BILL NUMBER: AB 2889	CHAPTERED  09/30/00

	CHAPTER   1055
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 30, 2000
	PASSED THE ASSEMBLY   AUGUST 22, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   AUGUST 8, 2000
	AMENDED IN SENATE   MAY 30, 2000
	AMENDED IN ASSEMBLY   APRIL 10, 2000

INTRODUCED BY   Committee on Consumer Protection, Governmental
Efficiency and Economic Development (Davis (Chair), Leach (Vice
Chair), Correa, Cox, Lempert, Machado, and Wesson)

                        MARCH 9, 2000

   An act to amend Sections 120, 149, 5018, 5150, 19870, 19880, and
22258 of the Business and Professions Code, to amend Section 1365 of
the Civil Code, to amend Section 14202 of the Corporations Code, to
amend Sections 14504.2, 14505, 33420, 41020, 41020.5, and 84040 of
the Education Code, to amend Section 22056 of the Financial Code, to
amend Sections 705, 58937, 59947, 64309, 64696, 76906, and 78558 of
the Food and Agricultural Code, to amend Sections 7504, 7591,
8899.10, 8899.12, 8899.16, 8899.21, 11126, 14998.4, 15311, 15363.6,
26509, 26915, 26945, 27000.7, 53131, and 68112 of, and to amend the
heading of Chapter 1 (commencing with Section 15310) of Part 6.7 of
Division 3 of Title 2 of, the Government Code, to amend Sections
11998.1, 33492.71, 34053, 34327.6, 41503.6, 41865, 50887.5, and
124850 of the Health and Safety Code, and to amend Sections 10821.5
and 12389 of the Insurance Code, to amend Sections 25696, 31306,
42021, and 42022 of the Public Resources Code, and to amend Sections
10525, 12112, 12151, 15076, 15076.5, and 15077 of the Unemployment
Insurance Code, relating to state government, and declaring the
urgency thereof, to take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2889, Committee on Consumer Protection, Governmental Efficiency
and Economic Development.  State government:  Trade and Commerce
Agency and professions and vocations.
   Existing law established the Trade and Commerce Agency in state
government as the successor to the Department of Commerce and
provides that the work of the agency is to be divided into specified
offices.
   This bill would make conforming changes to reflect that the Trade
and Commerce Agency is the successor to the Department of Commerce.
   Existing law establishes the California Board of Accountancy in
the Department of Consumer Affairs for the purpose of regulating
public accountants.
   This bill would make conforming changes to correct references in
various provisions of existing law to reflect the establishment of
this board.
   This bill would incorporate additional changes in Section 149 of
the Business and Professions Code proposed by SB 1863, to become
operative only if both bills are enacted, as specified, and become
operative on or before January 1, 2001, and this bill is enacted
last.
   This bill would incorporate additional changes in Section 84040 of
the Education Code proposed by AB 2388, to become operative only if
both bills are enacted, as specified, and become operative on or
before January 1, 2001, and this bill is enacted last.
   This bill would incorporate additional changes in Section 41865 of
the Health and Safety Code proposed by AB 2939, to become operative
only if both bills are enacted, as specified, and become operative on
or before January 1, 2001, and this bill is enacted last.
   This  bill would declare that it is to take effect immediately as
an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 120 of the Business and Professions Code is
amended to read:
   120.  (a) Subdivision (a) of Section 119 shall not apply to a
surviving spouse having in his or her possession or displaying a
deceased spouse's canceled certified public accountant certificate or
canceled public accountant certificate that has been canceled by
official action of the California Board of Accountancy.
   (b) Notwithstanding Section 119, any person who has received a
certificate of certified public accountant or a certificate of public
accountant from the board may possess and may display the
certificate received unless the person's certificate, permit, or
registration has been suspended or revoked.
  SEC. 2.  Section 149 of the Business and Professions Code is
amended to read:
   149.  (a) If, upon investigation, an agency designated in
subdivision (e) has probable cause to believe that a person is
advertising in a telephone directory with respect to the offering or
performance of services, without being properly licensed by or
registered with the agency to offer or perform those services, the
agency may issue a citation under Section 148 containing an order of
correction that requires the violator to do both of the following:
   (1) Cease the unlawful advertising.
   (2) Notify the telephone company furnishing services to the
violator to disconnect the telephone service furnished to any
telephone number contained in the unlawful advertising.
   (b) This action is stayed if the person to whom a citation is
issued under subdivision (a) notifies the agency in writing that he
or she intends to contest the citation.  The agency shall afford an
opportunity for a hearing, as specified in Section 125.9.
   (c) If the person to whom a citation and order of correction is
issued under subdivision (a) fails to comply with the order of
correction after that order is final, the agency shall inform the
Public Utilities Commission of the violation and the Public Utilities
Commission shall require the telephone corporation furnishing
services to that person to disconnect the telephone service furnished
to any telephone number contained in the unlawful advertising.
   (d) The good faith compliance by a telephone corporation with an
order of the Public Utilities Commission to terminate service issued
pursuant to this section shall constitute a complete defense to any
civil or criminal action brought against the telephone corporation
arising from the termination of service.
   (e) Subdivision (a) shall apply to the following boards, bureaus,
committees, commissions, or programs:
   (1) The State Board of Barbering and Cosmetology.
   (2) The Funeral Directors and Embalmers Program.
   (3) The Veterinary Medical Board.
   (4) The Hearing Aid Dispensers Advisory Commission.
   (5) The State Board of Landscape Architects.
   (6) The California Board of Podiatric Medicine.
   (7) The Respiratory Care Board of California.
   (8) The Bureau of Home Furnishings and Thermal Insulation.
   (9) The Bureau of Security and Investigative Services.
   (10) The Bureau of Electronic and Appliance Repair.
   (11) The Bureau of Automotive Repair.
   (12) The Tax Preparers Program.
   (13) The California Board of Architectural Examiners.
   (14) The Speech-Language Pathology and Audiology Board.
   (15) The Board for Professional Engineers and Land Surveyors.
   (16) The Board of Behavioral Sciences.
   (17) The State Board of Registration for Geologists and
Geophysicists.
   (18) The Structural Pest Control Board.
   (19) The Acupuncture Board.
   (20) The Board of Psychology.
   (21) The California Board of Accountancy.
  SEC. 2.5.  Section 149 of the Business and Professions Code is
amended to read:
   149.  (a) If, upon investigation, an agency designated in
subdivision (e) has probable cause to believe that a person is
advertising in a telephone directory with respect to the offering or
performance of services, without being properly licensed by or
registered with the agency to offer or perform those services, the
agency may issue a citation under Section 148 containing an order of
correction that requires the violator to do both of the following:
   (1) Cease the unlawful advertising.
   (2) Notify the telephone company furnishing services to the
violator to disconnect the telephone service furnished to any
telephone number contained in the unlawful advertising.
   (b) This action is stayed if the person to whom a citation is
issued under subdivision (a) notifies the agency in writing that he
or she intends to contest the citation.  The agency shall afford an
opportunity for a hearing, as specified in Section 125.9.
   (c) If the person to whom a citation and order of correction is
issued under subdivision (a) fails to comply with the order of
correction after that order is final, the agency shall inform the
Public Utilities Commission of the violation and the Public Utilities
Commission shall require the telephone corporation furnishing
services to that person to disconnect the telephone service furnished
to any telephone number contained in the unlawful advertising.
   (d) The good faith compliance by a telephone corporation with an
order of the Public Utilities Commission to terminate service issued
pursuant to this section shall constitute a complete defense to any
civil or criminal action brought against the telephone corporation
arising from the termination of service.
   (e) Subdivision (a) shall apply to the following boards, bureaus,
committees, commissions, or programs:
   (1) The Bureau of Barbering and Cosmetology.
   (2) The Funeral Directors and Embalmers Program.
   (3) The Veterinary Medical Board.
   (4) The Hearing Aid Dispensers Advisory Commission.
   (5) The Landscape Architects Technical Committee.
   (6) The California Board of Podiatric Medicine.
   (7) The Respiratory Care Board of California.
   (8) The Bureau of Home Furnishings and Thermal Insulation.
   (9) The Bureau of Security and Investigative Services.
   (10) The Bureau of Electronic and Appliance Repair.
   (11) The Bureau of Automotive Repair.
   (12) The Tax Preparers Program.
   (13) The California  Architects Board.
   (14) The Speech-Language Pathology and Audiology Board.
   (15) The Board for Professional Engineers and Land Surveyors.
   (16) The Board of Behavioral Sciences.
   (17) The State Board for Geologists and Geophysicists.
   (18) The Structural Pest Control Board.
   (19) The Acupuncture  Board.
   (20) The Board of Psychology.
   (21) The California Board of Accountancy.
  SEC. 3.  Section 5018 of the Business and Professions Code is
amended to read:
   5018.  The board may by regulation, prescribe, amend, or repeal
rules of professional conduct appropriate to the establishment and
maintenance of a high standard of integrity and dignity in the
profession.  In addition to the requirements contained in Chapter 4
(commencing with Section 11370) of Part 1 of Division 3 of Title 2 of
the Government Code, a copy of the rules shall be mailed to every
holder of a license under this chapter at least 30 days prior to a
date named for a public hearing held for the purpose of receiving and
considering objections to any of the proposed provisions.  Every
licensee of the California Board of Accountancy in this state shall
be governed and controlled by the rules and standards adopted by the
board.
  SEC. 4.  Section 5150 of the Business and Professions Code is
amended to read:
   5150.  An accountancy corporation is a corporation which is
registered with the California Board of Accountancy and has a
currently effective certificate of registration from the board
pursuant to the Moscone-Knox Professional Corporation Act, as
contained in Part 4 (commencing with Section 13400) of Division 3 of
Title 1 of the Corporations Code, and this article.  Subject to all
applicable statutes, rules and regulations, an accountancy
corporation is entitled to practice accountancy.  With respect to an
accountancy corporation, the governmental agency referred to in the
Moscone-Knox Professional Corporation Act is the California Board of
Accountancy.
  SEC. 5.  Section 19870 of the Business and Professions Code is
amended to read:
   19870.  In addition to the requirements of Section 19841, in order
to be eligible to receive a gambling license as the owner of a
gambling enterprise, a corporation shall comply with all of the
following requirements:
   (a) Maintain an office of the corporation in the gambling
establishment.
   (b) Comply with all of the requirements of the laws of this state
pertaining to corporations.
   (c) Maintain, in the corporation's principal office in California
or in the gambling establishment, a ledger that meets both of the
following conditions:
   (1) At all times reflects the ownership of record of every class
of security issued by the corporation.
   (2) Is available for inspection by the division at all reasonable
times without notice.
   (d) Register as a corporation with the division and supply the
following supplemental information to the division:
   (1) The organization, financial structure, and nature of the
business to be operated, including the names, personal and criminal
history, and fingerprints of all officers, directors, and key
employees, and the names, addresses, and number of shares held by all
stockholders of record.
   (2) The rights and privileges acquired by the holders of different
classes of authorized securities, including debentures.
   (3) The terms on which securities are to be offered.
   (4) The terms and conditions on all outstanding loans, mortgages,
trust deeds, pledges, or any other indebtedness or security device.
   (5) The extent of the equity security holdings in the corporation
of all officers, directors, and underwriters, and their remuneration
as compensation for services, in the form of salary, wages, fees, or
otherwise.
   (6) The amount of remuneration to persons other than directors and
officers in excess of fifty thousand dollars ($50,000) per annum.
   (7) Bonus and profit-sharing arrangements.
   (8) Management and service contracts.
   (9) Options existing, or to be created, in respect of their
securities or other interests.
   (10) Financial statements for at least three fiscal years
preceding the year of registration, or, if the corporation has not
been in existence for a period of three years, financial statements
from the date of its formation.  All financial statements shall be
prepared in accordance with generally accepted accounting principles
and audited by a licensee of the California Board of Accountancy.
   (11) Any further financial data that the division, with the
approval of the board, may deem necessary or appropriate for the
protection of the state.
   (12) An annual profit-and-loss statement and an annual balance
sheet, and a copy of its annual federal income tax return, within 30
calendar days after that return is filed with the Internal Revenue
Service.
  SEC. 6.  Section 19880 of the Business and Professions Code is
amended to read:
   19880.  In addition to the requirements of Section 19841, in order
to be eligible to receive a gambling license to own a gambling
enterprise, a limited partnership shall comply with all of the
following requirements:
   (a) Be formed under the laws of this state.
   (b) Maintain an office of the limited partnership in the gambling
establishment.
   (c) Comply with all of the requirements of the laws of this state
pertaining to limited partnerships.
   (d) Maintain a ledger in the principal office of the limited
partnership in California that shall meet both of the following
conditions:
   (1) At all times reflects the ownership of all interests in the
limited partnership.
   (2) Be available for inspection by the division at all reasonable
times without notice.
   (e) Register with the division and supply the following
supplemental information to the division:
   (1) The organization, financial structure, and nature of the
business to be operated, including the names, personal history, and
fingerprints of all general partners and key employees, and the name,
address, and interest of each limited partner.
   (2) The rights, privileges, and relative priorities of limited
partners as to the return of contributions to capital, and the right
to receive income.
   (3) The terms on which limited partnership interests are to be
offered.
   (4) The terms and conditions on all outstanding loans, mortgages,
trust deeds, pledges, or any other indebtedness or security device.
   (5) The extent of the holding in the limited partnership of all
underwriters, and their remuneration as compensation for services, in
the form of salary, wages, fees, or otherwise.
   (6) The remuneration to persons other than general partners in
excess of fifty thousand dollars ($50,000) per annum.
   (7) Bonus and profit-sharing arrangements.
   (8) Management and service contracts.
   (9) Options existing or to be created.
   (10) Financial statements for at least three fiscal years
preceding the year of registration, or, if the limited partnership
has not been in existence for a period of three years, financial
statements from the date of its formation.  All financial statements
shall be prepared in accordance with generally accepted accounting
principles and audited by a licensee of the California Board of
Accountancy in accordance with generally accepted auditing standards.

   (11) Any further financial data that the division reasonably deems
necessary or appropriate for the protection of the state.
   (12) An annual profit and loss statement and an annual balance
sheet, and a copy of its annual federal income tax return, within 30
calendar days after the return is filed with the Internal Revenue
Service.
  SEC. 7.  Section 22258 of the Business and Professions Code is
amended to read:
   22258.  The following persons are exempt from the requirements of
this title:
   (a) A person with a current and valid license issued by the
California Board of Accountancy and his or her employees while
functioning within the scope of their employment.
   (b) A person who is an active member of the State Bar of
California and his or her employees while functioning within the
scope of their employment.
   (c) An employee of any trust company or trust business as defined
in Chapter 1 (commencing with Section 99) of Division 1 of the
Financial Code while functioning within the scope of his or her
employment.
   (d) A financial institution regulated by the state or federal
government, and employees thereof, insofar as the activities of the
employees are related to their employment and the activities of the
financial institution with respect to tax preparation are subject to
federal or state examination or oversight.
   (e) A person who is enrolled to practice before the Internal
Revenue Service pursuant to Subpart A (commencing with Section 10.1)
of Part 10 of Title 31 of the Code of Federal Regulations, and his or
her employees while functioning within the scope of his or her
employment.
  SEC. 8.  Section 1365 of the Civil Code is amended to read:
   1365.  Unless the governing documents impose more stringent
standards, the association shall prepare and distribute to all of its
members the following documents:
   (a) A pro forma operating budget, which shall include all of the
following:
   (1) The estimated revenue and expenses on an accrual basis.
   (2) A summary of the association's reserves based upon the most
recent review or study conducted pursuant to Section 1365.5, which
shall be printed in bold type and include all of the following:
   (A) The current estimated replacement cost, estimated remaining
life, and estimated useful life of each major component.
   (B) As of the end of the fiscal year for which the study is
prepared:
   (i) The current estimate of the amount of cash reserves necessary
to repair, replace, restore, or maintain the major components.
   (ii) The current amount of accumulated cash reserves actually set
aside to repair, replace, restore, or maintain major components.
   (iii) If applicable, the amount of funds received from either a
compensatory damage award or settlement to an association from any
person or entity for injuries to property, real or personal, arising
out of any construction or design defects, and the expenditure or
disposition of funds, including the amounts expended for the direct
and indirect costs of repair of construction or design defects.
These amounts shall be reported at the end of the fiscal year for
which the study is prepared as separate line items under cash
reserves pursuant to clause (ii).  In lieu of complying with the
requirements set forth in this clause, an association that is
obligated to issue a review of their financial statement pursuant to
subdivision (b) may include in the review a statement containing all
of the information required by this clause.
   (C) The percentage that the amount determined for purposes of
clause (ii) subparagraph (B) equals the amount determined for
purposes of clause (i) of subparagraph (B).
   (3) A statement as to whether the board of directors of the
association has determined or anticipates that the levy of one or
more special assessments will be required to repair, replace, or
restore any major component or to provide adequate reserves therefor.

   (4) A general statement addressing the procedures used for the
calculation and establishment of those reserves to defray the future
repair, replacement, or additions to those major components that the
association is obligated to maintain.
   The summary of the association's reserves disclosed pursuant to
paragraph (2) shall not be admissible in evidence to show improper
financial management of an association, provided that other relevant
and competent evidence of the financial condition of the association
is not made inadmissible by this provision.
   A copy of the operating budget shall be annually distributed not
less than 45 days nor more than 60 days prior to the beginning of the
association's fiscal year.
   (b) A review of the financial statement of the association shall
be prepared in accordance with generally accepted accounting
principles by a licensee of the California Board of Accountancy for
any fiscal year in which the gross income to the association exceeds
seventy-five thousand dollars ($75,000).  A copy of the review of the
financial statement shall be distributed within 120 days after the
close of each fiscal year.
   (c) In lieu of the distribution of the pro forma operating budget
required by subdivision (a), the board of directors may elect to
distribute a summary of the pro forma operating budget to all of its
members with a written notice that the pro forma operating budget is
available at the business office of the association or at another
suitable location within the boundaries of the development, and that
copies will be provided upon request and at the expense of the
association.  If any member requests that a copy of the pro forma
operating budget required by subdivision (a) be mailed to the member,
the association shall provide the copy to the member by first-class
United States mail at the expense of the association and delivered
within five days.  The written notice that is distributed to each of
the association members shall be in at least 10-point boldface type
on the front page of the summary of the budget.
   (d) A statement describing the association's policies and
practices in enforcing lien rights or other legal remedies for
default in payment of its assessments against its members shall be
annually delivered to the members during the 60-day period
immediately preceding the beginning of the association's fiscal year.

   (e) (1) A summary of the association's property, general
liability, and earthquake and flood insurance policies, which shall
be distributed within 60 days preceding the beginning of the
association's fiscal year, that includes all of the following
information about each policy:
   (A) The name of the insurer.
   (B) The type of insurance.
   (C) The policy limits of the insurance.
   (D) The amount of deductibles, if any.
   (2) The association shall, as soon as reasonably practicable,
notify its members by first-class mail if any of the policies
described in paragraph (1) have lapsed, been canceled, and are not
immediately renewed, restored, or replaced, or if there is a
significant change, such as a reduction in coverage or limits or an
increase in the deductible, as to any of those policies.  If the
association receives any notice of nonrenewal of a policy described
in paragraph (1), the association shall immediately notify its
members if replacement coverage will not be in effect by the date the
existing coverage will lapse.
   (3) To the extent that any of the information required to be
disclosed pursuant to paragraph (1) is specified in the insurance
policy declaration page, the association may meet its obligation to
disclose that information by making copies of that page and
distributing it to all of its members.
   (4) The summary distributed pursuant to paragraph (1) shall
contain, in at least 10-point boldface type, the following statement:
  "This summary of the association's policies of insurance provides
only certain information, as required by subdivision (e) of Section
1365 of the Civil Code, and should not be considered a substitute for
the complete policy terms and conditions contained in the actual
policies of insurance.  Any association member may, upon request and
provision of reasonable notice, review the association's insurance
policies and, upon request and payment of reasonable duplication
charges, obtain copies of those policies.  Although the association
maintains the policies of insurance specified in this summary, the
association's policies of insurance may not cover your property,
including personal property or, real property improvements to or
around your dwelling, or personal injuries or other losses that occur
within or around your dwelling.  Even if a loss is covered, you may
nevertheless be responsible for paying all or a portion of any
deductible that applies.  Association members should consult with
their individual insurance broker or agent for appropriate additional
coverage."
  SEC. 9.  Section 14202 of the Corporations Code is amended to read:

   14202.  The Trade and Commerce Agency shall assist other public
agencies, nonprofit corporations, or foundations in the development
and facilitation of employee-owned businesses.  In support of this
activity the Trade and Commerce Agency shall do each of the
following:
   (a) Compile, organize, and make available to the public a library
of resources on the subject of employee ownership.
   (b) Provide public education on the beneficial aspects of
employee-owned businesses and employee participation in business
management.
   (c) Promote the research of issues relative to the innovative
utilization of employee ownership and participation for the purpose
of local economic development.
   (d) Provide or facilitate the provision of technical assistance on
the establishment and successful management of employee-owned
businesses.
   (e) Promote and participate in seminars, workshops, and
conferences to increase awareness especially of professional,
private, and public sectors important to economic development and
business assistance, of the benefits found to be common to
employee-owned businesses.
  SEC. 10.  Section 14504.2 of the Education Code is amended to read:

   14504.2.  (a) The Controller may perform quality control reviews
of audit working papers to determine whether audits are performed in
conformity with subdivision (a) of Section 14503.  The Department of
Finance may refer an independent auditor of a school district to the
Controller for a review pursuant to this section if the Department of
Finance finds that an audit of a school district was conducted in a
manner that may constitute noncompliance with subdivision (a) of
Section 14503.  The Controller shall communicate the results of his
or her reviews to the Department of Finance, the independent auditor,
and the school district or office of the county superintendent of
schools for which the audit was performed, and shall review his or
her findings with the independent auditor.
   (b) Prior to the performance of any quality control reviews, the
Controller shall develop and publish guidelines and standards for
those reviews.  Pursuant to the development of those guidelines and
standards, the Controller shall provide opportunity for public
comment.
   (c) If a school district has received an emergency apportionment
pursuant to Article 2 (commencing with Section 41320) or Article 2.5
(commencing with Section 41325) of Chapter 3 of Part 24, the
Controller shall conduct a quality control review of the audit
working papers of the independent auditor who performed the audits
for that school district for the prior three fiscal years.  If the
quality control review of the Controller indicates that the audit was
conducted in a manner that may constitute unprofessional conduct as
defined pursuant to Section 5100 of the Business and Professions
Code, including, but not limited to, gross negligence resulting in a
material misstatement in the audit, the Controller shall refer the
case to the California Board of Accountancy.  If the California Board
of Accountancy finds that the independent auditor conducted an audit
in an unprofessional manner, the independent auditor is prohibited
from performing any school district audit for a period of three
years, in addition to any other penalties that the California Board
of Accountancy may impose.
   (d) In any matter that is referred to the California Board of
Accountancy under subdivision (c), the Controller may suspend the
independent auditor from performing any school district audits
pending final disposition of the matter by the California Board of
Accountancy if the Controller gives the independent auditor notice
and an opportunity to respond to that suspension.  The independent
auditor shall be given credit for any period of suspension if the
California Board of Accountancy prohibits the independent auditor
from performing audits of the school district under subdivision (c).
In no event may the Controller suspend an independent auditor under
this subdivision for a period of longer than three years.
   (e) The county superintendent of schools or the county board of
education may refer an independent auditor of a school district to
the California Board of Accountancy for
               action pursuant to subdivision (c) if an audit of a
school district was conducted in a manner that may constitute
unprofessional conduct as defined by Section 5100 of the Business and
Professions Code, including, but not limited to, gross negligence
resulting in a material misstatement in the audit.
  SEC. 11.  Section 14505 of the Education Code is amended to read:
   14505.  The governing board of each school district and each
office of the county superintendent of schools shall include the
following two provisions in their contracts for audits:
   (a) A provision to withhold 10 percent of the audit fee until the
Controller certifies that the audit report conforms to the reporting
provisions of subdivision (a) of Section 14503.
   (b) A provision to withhold 50 percent of the audit fee for any
subsequent year of a multiyear contract if the prior year's audit
report was not certified as conforming to reporting provisions of
subdivision (a) of Section 14503.  This provision shall include a
statement that a multiyear contract will be null and void if a firm
or individual is declared ineligible pursuant to subdivision (c) of
Section 41020.5.  The amount withheld is not payable unless payment
is ordered by the California Board of Accountancy or the audit report
for that subsequent year is certified by the Controller as
conforming to reporting provisions of subdivision (a) of Section
14503.
   (c) Within 30 days from the date of receipt of written
notification that the Controller refuses to certify an audit report
as conforming to reporting provisions of subdivision (a) of Section
14503, an auditor or audit firm having a portion of an audit fee
withheld pursuant to these provisions may file an appeal in writing
with the California Board of Accountancy.  The board shall complete
an investigation of the appeal within 90 days of the filing date and,
on the basis of the investigation, do either of the following:
   (1) Order the Controller to provide notification that the audit
report conforms to reporting provisions of subdivision (a) of Section
14503.
   (2) Schedule the appeal for a hearing, in which case the final
action on the appeal shall be completed by the board within one year
from the date of filing the appeal.
   (d) If the board orders the Controller to provide notification
that the audit report conforms to reporting provisions of subdivision
(a) of Section 14503, the Controller shall notify the contracting
school district which shall then release the portion of the audit fee
being withheld in accordance with this section.
  SEC. 12.  Section 33420 of the Education Code is amended to read:
   33420.  (a) The Superintendent of Public Instruction, in
cooperation with the Department of Finance and the State Auditor,
shall, on or before July 1, 1980, provide for a plan for independent
audits of state and federal funds allocated to private agencies that
are under contract with the State Department of Education for the
provision of educational services.
   For the purpose of this article, "educational services" includes,
but is not limited to, child nutrition and child development
services.
   To the maximum extent possible, the plan shall conform to audit
procedures pursuant to Section 41020.5.
   (b) Effective July 1, 1980, the State Department of Education, as
a condition to any contract with a private agency for the provision
of educational services, shall require a periodic audit of state and
federal funds to be conducted by departmental staff auditors or a
certified public accountant or public accountant who is licensed by
the California Board of Accountancy.  For child development services,
the audit shall include all funds deposited in the child development
fund.  For all other educational services, the audit shall be
limited to those state and federal funds accruing to the private
agency as a result of its contract with the State Department of
Education.
   (c) If in the course of those audits of a private agency, an audit
exception is reported by the certified public accounting firm in
excess of a material amount as determined by the Superintendent of
Public Instruction, the Superintendent of Public Instruction shall,
upon final determination by the superintendent of the amount of the
audit exception, collect that audit exception and redistribute the
amount collected to the same class of program, or withhold the amount
of the audit exception from the next payment to the agency in which
the audit exception was discovered.
   (d) The State Department of Education shall establish a schedule
for audits that meets federal regulations.
   (e) The State Department of Education may exempt from the
provisions of this section those agencies for which, in the
department's estimation, the cost of an audit would be inordinate in
relation to the level of funding received by the private agency for
the educational services provided.
  SEC. 13.  Section 41020 of the Education Code is amended to read:
   41020.  (a) It is the intent of the Legislature to encourage sound
fiscal management practices among school districts for the most
efficient and effective use of public funds for the education of
children in California by strengthening fiscal accountability at the
district, county, and state levels.
   (b) Not later than the first day of May of each fiscal year each
county superintendent of schools shall provide for an audit of all
funds under his or her jurisdiction and control and the governing
board of each school district shall either provide for an audit of
the books and accounts of the school district, including an audit of
school district income and expenditures by source of funds, or make
arrangements with the county superintendent of schools having
jurisdiction over the school district to provide for that auditing.
In the event the governing board of a school district has not
provided for an audit of the books and accounts of the district by
April 1, the county superintendent of schools having jurisdiction
over the district shall provide for the audit.
   (c) Each audit conducted in accordance with this section shall
include all funds of the school district including the student body
and cafeteria funds and accounts and any other funds under the
control or jurisdiction of the school district and funds of regional
occupational centers and programs maintained by the county
superintendent of schools, a school district, or pursuant to a joint
powers agreement.  Each audit shall also include an audit of
attendance procedures.
   (d) All audit reports for the 1988-89 fiscal year, and for each
subsequent fiscal year, shall be developed and reported using a
format established by the Controller after consultation with the
Superintendent of Public Instruction.
   (e) (1) The cost of the audits provided for by the county
superintendent of schools shall be paid from the county school
service fund and the county superintendent of schools shall transfer
the pro rata share of the cost chargeable to each district from
district funds.
   (2) The cost of the audit provided for by a governing board shall
be paid from school district funds.  The audit of the funds under the
jurisdiction and control of the county superintendent of schools
shall be paid from the county school service fund.
   (f) The audits shall be made by a certified public accountant or a
public accountant, licensed by the California Board of Accountancy.

   (g) (1) The auditor's report shall include each of the following:

   (A) A statement that the audit was conducted pursuant to standards
and procedures developed in accordance with Chapter 3 (commencing
with Section 14500) of Part 9 of Division 1 of Title 1.
   (B) A summary of audit exceptions and management improvement
recommendations.
   (2) To the extent possible, a description of correction or plan of
correction shall be incorporated in the audit report, describing the
specific actions that are planned to be taken, or that have been
taken, to correct the problem identified by the auditor.  The
descriptions of specific actions to be taken or that have been taken
shall not solely consist of general comments such as "will implement,"
"accepted the recommendation," or "will discuss at a later date."
   (h) Not later than December 15, a report of each audit for the
preceding fiscal year shall be filed with the county superintendent
of schools of the county in which the school district is located, the
State Department of Education, and the Controller.  The
Superintendent of Public Instruction shall make any adjustments
necessary in future apportionments of all state funds, to correct any
audit exceptions revealed by such audit reports.
   (i) Commencing with the 1993-94 audit of school districts pursuant
to this section, each county superintendent of schools shall be
responsible for reviewing the audit exceptions contained in an audit
of a school district under his or her jurisdiction related to
attendance, inventory of equipment, internal control, and any
miscellaneous items, and determining whether the exceptions have been
either corrected or an acceptable plan of correction has been
developed.
   (j) Upon submission of the final audit report to the governing
board of each school district and subsequent receipt of the audit by
the county superintendent of schools having jurisdiction over the
school district, the county office of education shall do all of the
following:
   (1) Review audit exceptions related to attendance, inventory of
equipment, internal control, and other miscellaneous exceptions.
Attendance exceptions or issues shall include, but not be limited to,
those related to revenue limits, adult education, and independent
study.
   (2) If a description of the correction or plan of correction has
not been provided as part of the audit required by this section, then
the county superintendent of schools shall notify the school
district and request the governing board of the school district to
provide to the county superintendent of schools a description of the
corrections or plan of correction by March 15.
   (3) Review the description of correction or plan of correction and
determine its adequacy.  If the description of the correction or
plan of correction is not adequate, the county superintendent of
schools shall require the school district to resubmit that portion of
its response that is inadequate.
   (k) Each county superintendent of schools shall certify to the
Superintendent of Public Instruction, by May 15, that his or her
staff has reviewed all audits of school districts under his or her
jurisdiction for the prior fiscal year, that all exceptions that the
county superintendent was required to review were reviewed, and that
all of those exceptions, except as otherwise noted in the
certification, have been corrected by the school district or an
acceptable plan of correction has been submitted to the county
superintendent of schools.  In addition, the county superintendent
shall identify by school district, any attendance-related audit
exception that had a fiscal impact on state funds, and require the
school district to which the attendance-related audit exception was
directed to submit the appropriate forms for processing by the
Superintendent of Public Instruction.
   (l) In the audit of a school district for a subsequent year, the
auditor shall review the correction or plan or plans of correction
submitted by the school district to determine if the exceptions have
been resolved.  If not, then the auditor shall immediately notify the
appropriate county office of education and the State Department of
Education and restate the exception in the audit report.  After
receiving that notification, the State Department of Education shall
either consult with the school district to resolve the exception or
require the county superintendent of schools to follow up with the
school district.
   (m) (1) The Superintendent of Public Instruction shall be
responsible for assuring that school districts have either corrected
or developed a plan of correction for any or all of the following:
   (A) All federal and state compliance audit exceptions identified
in the audit.
   (B) Any exceptions that the county superintendent certifies as of
May 15 have not been corrected.
   (C) Any repeat audit exceptions that are not assigned to a county
superintendent to correct.
   (2) In addition, the Superintendent of Public Instruction shall be
responsible for assuring that county superintendents of schools and
county boards of education that serve as the governing board of a
school district either correct all audit exceptions identified in the
audits of county superintendents of schools and of the school
district for which the county board of education serves as the
governing board or develop an acceptable plan of correction for those
exceptions.
   (n) In order to facilitate the correction of the exceptions
identified by the audits issued pursuant to this section, commencing
with 1994-95 audits pursuant to this section, the Controller shall
require auditors to categorize audit exceptions in the audit report
in a manner that will make it clear to both the county superintendent
of schools and the Superintendent of Public Instruction which
exceptions they are responsible for assuring the correction of by a
school district.  In addition, the Controller annually shall select a
sampling of county superintendents of schools and perform a followup
of the audit resolution process of those county superintendents of
schools and report the results of that followup to the Superintendent
of Public Instruction and the county superintendents of schools that
were reviewed.
   (o) The county superintendent of schools shall adjust the future
local property tax requirements to correct audit exceptions relating
to school district tax rates and tax revenues.
   (p) If a governing board or county superintendent of schools fails
or is unable to make satisfactory arrangements for audit pursuant to
this section, the Controller shall make arrangements for the audit
and the cost of the audit shall be paid from school district funds or
the county school service fund, as the case may be.
   (q) Audits of regional occupational centers and programs are
subject to the provisions of this section.
   (r) Nothing in this section shall be construed to authorize
examination into or report on the curriculum used or provided for in
any school district.
  SEC. 14.  Section 41020.5 of the Education Code is amended to read:

   41020.5.  (a) Whenever the Controller determines by two
consecutive quality control reviews pursuant to Section 14504.2 that
audits performed by a certified public accountant or public
accountant under Section 41020 were not performed in substantial
conformity with provisions of the audit guide, or that the audit
reports, including amended reports, submitted by February 15
following the close of the fiscal year audited, for two consecutive
years do not conform to provisions of the audit guide as required by
Section 14504, the Controller shall notify in writing the certified
public accountant or public accountant and the California Board of
Accountancy.
   If the certified public accountant or public accountant does not
file an appeal in writing with the California Board of Accountancy
within 30 calendar days after receipt of the Controller's
notification, the Controller's determination under this section shall
be final.
   (b) If an appeal is filed with the California Board of
Accountancy, the board shall complete an investigation of the appeal
within 90 days of the filing date.  On the basis of the
investigation, the board may do either of the following:
   (1) Find that the Controller's determination should not be upheld
and has no effect.
   (2) Schedule the appeal for a hearing, in which case, the final
action on the appeal shall be completed by the board within one year
from the date of filing the appeal.
   (c) If the Controller's determination under subdivision (a)
becomes final, the certified public accountant or public accountant
shall be ineligible to conduct audits under Section 41020 for a
period of three years, or, in the event of an appeal, for any period,
and subject to the conditions, that may be ordered by the California
Board of Accountancy.  Not later than the first day of March of each
year, the Controller shall notify each school district and county
office of education of those certified public accountants or public
accountants determined to be ineligible under this section.  School
districts and county offices of education shall not use the audit
services of a certified public accountant or public accountant
ineligible under this section.
   For the purposes of this section, the term "certified public
accountant or public accountant" shall include any person or firm
entering into a contract to conduct an audit under Section 41020.
   This section shall not preclude the California Board of
Accountancy from taking any disciplinary action it deems appropriate
under other provisions of law.
  SEC. 15.  Section 84040 of the Education Code is amended to read:
   84040.  (a) It is the intent of the Legislature to encourage sound
fiscal management practices among community college districts for
the most efficient and effective use of public funds for the
education of community college students by strengthening fiscal
accountability at the district and state levels.
   (b) The governing board of each community college district shall
provide for an annual audit of all funds, books, and accounts of the
district in accordance with regulations of the board of governors.
The audit shall be made by certified public accountants licensed by
the California Board of Accountancy.  In the event the governing
board of a community college district fails to provide for an audit,
the board of governors shall provide for an audit, and if the board
of governors fails or is unable to make satisfactory arrangements for
such an audit, the Department of Finance shall make arrangements for
the audit.  The cost of any audit described above shall be paid from
district funds.
   (c) The board of governors shall adopt criteria and standards for
periodic assessment of the fiscal condition of community college
districts, and these regulations regarding the review and improvement
of district fiscal conditions as necessary to encourage sound fiscal
management practices.  In so doing:
   (1) The governing board of a community college district, as
required by regulations of the board of governors, shall periodically
report information to the board of governors regarding the fiscal
condition of the district.
   (2) The board of governors, by regulation, shall develop standards
for district maintenance of sound fiscal conditions.  The
regulations shall authorize a board comprehensive management review
of any community college district which, after assessing itself or
being assessed in accordance with board criteria and standards, is
shown to be experiencing fiscal difficulty.  On the basis of the
findings of the management review, the board of governors may
recommend appropriate changes in a district's management practices.
   (3) The board of governors, by regulation, shall develop
appropriate procedures and actions for districts that fail to achieve
fiscal stability or that fail to comply with the board of governors'
recommendations.  The procedures and remedies may include the
appointment of a special trustee to manage the district.  The board
of governors shall be authorized to reduce or withhold apportionment
to districts to pay for the cost of the special trustee, management
review, or other extraordinary costs resulting from the district's
fiscal difficulties and to ensure the stabilization of the district's
financial condition.
   (4) The board of governors shall report to the chairs of the
educational policy and fiscal committees of both houses of the
Legislature, the Director of Finance, and the Governor any corrective
action taken by the district and any action taken against the
district pursuant to paragraph (3).
  SEC. 15.5.  Section 84040 of the Education Code is amended to read:

   84040.  (a) It is the intent of the Legislature to encourage sound
fiscal management practices among community college districts for
the most efficient and effective use of public funds for the
education of community college students by strengthening fiscal
accountability at the district and state levels.
   (b) The governing board of each community college district shall
provide for an annual audit of all funds, books, and accounts of the
district in accordance with regulations of the board of governors.
The audit shall be made by certified public accountants licensed by
the California Board of Accountancy.  In the event the governing
board fails to provide for an audit, the board of governors shall
provide for the audit, and if the board of governors fails or is
unable to make satisfactory arrangements for the audit, the
Department of Finance shall make arrangements for the audit.  The
cost of any audit described above shall be paid from district funds.

   (c) The board of governors shall adopt criteria and standards for
periodic assessment of the fiscal condition of community college
districts, and these regulations regarding the review and improvement
of district fiscal conditions as necessary to encourage sound fiscal
management practices.  In so doing:
   (1) The governing board of a community college district, as
required by regulations of the board of governors, shall periodically
report information to the board of governors regarding the fiscal
condition of the district.
   (2) The board of governors, by regulation, shall develop standards
for district maintenance of sound fiscal conditions.  The
regulations shall authorize a comprehensive management review by the
board of governors of any community college district  that, after
assessing itself or being assessed in accordance with criteria and
standards of the board of governors, is shown to be experiencing
fiscal difficulty.  On the basis of the findings of the management
review, the board of governors may recommend appropriate changes in a
district's management practices.
   (3) The board of governors, by regulation, shall develop
appropriate procedures and actions for districts that fail to achieve
fiscal stability or that fail to comply with the board of governors'
recommendations.  The procedures and remedies may include the
appointment of a special trustee to manage the district.  The board
of governors shall be authorized to reduce or withhold apportionment
to districts to pay for the cost of the special trustee, management
review, or other extraordinary costs resulting from the district's
fiscal difficulties and to ensure the stabilization of the district's
financial condition.
   (4) The board of governors shall report to the chairs of the
educational policy and fiscal committees of both houses of the
Legislature, the Director of Finance, and the Governor any corrective
action taken by the district and any action taken against the
district pursuant to paragraph (3).
  SEC. 16.  Section 22056 of the Financial Code is amended to read:
   22056.  This division does not apply to the Trade and Commerce
Agency or to the California Integrated Waste Management Board.
  SEC. 17.  Section 705 of the Food and Agricultural Code is amended
to read:
   705.  All state agencies, including, but not limited to, the
California State World Trade Commission, Trade and Commerce Agency,
Department of Finance, and the Employment Development Department
shall cooperate with the director in the compilation of pertinent
statistical data and shall respond to requests by the director for
information in a timely manner.
  SEC. 18.  Section 58937 of the Food and Agricultural Code is
amended to read:
   58937.  (a) Any money that is collected by the director pursuant
to this chapter shall be deposited in a bank or other depository that
is approved by the Director of Finance, allocated to each marketing
order under which it is collected.  Except as provided in Section
58941, these funds shall be disbursed by the director or the advisory
board only for the necessary expenses that are incurred by the
advisory board and that are approved by the director with respect to
each marketing order.  Allowable expenses include expenses generated
by the auditing requirement imposed by subdivision (b).
   Funds so collected shall be deposited and disbursed in conformity
with appropriate rules and regulations that are prescribed by the
director.  The expenditure of these funds is exempt from the
provisions of Section 925.6 of the Government Code.
   (b) All such expenditures by the director shall be audited at
least once every two years by one of the following means:
   (1) By contract with a certified public accountant.
   (2) By contract with a public accountant holding a valid permit
issued by the California Board of Accountancy.
   (3) By contract with a public accounting firm.
   (4) By agreement with the Department of Finance.
   A copy of the audit shall be delivered within 30 days after the
completion of the audit to the Governor, the director, and the
Controller.
  SEC. 19.  Section 59947 of the Food and Agricultural Code is
amended to read:
   59947.  (a) The funds that are deposited pursuant to Section 59946
shall be disbursed by the director or the marketing program
committee, pursuant to regulations prescribed by him or her, only for
the expenditures that are incurred by the marketing program
committee in carrying out the specific purposes and provisions of the
marketing program, including all necessary expenses that are
incurred in the formulation, administration, and enforcement of the
marketing program, and expenses generated by the auditing requirement
imposed by subdivision (b).
   (b) All expenditures shall be audited at least once every two
years by one of the following means:
   (1) By contract with a certified public accountant.
   (2) By contract with a public accountant holding a valid permit
issued by the California Board of Accountancy.
   (3) By contract with a public accounting firm.
   (4) By agreement with the Department of Finance.
   A copy of the audit shall be delivered, within 30 days after the
completion of the audit, to the Governor, the director, and the
Controller.
  SEC. 20.  Section 64309 of the Food and Agricultural Code is
amended to read:
   64309.  (a) Any money that is collected by the director pursuant
to this chapter shall be deposited in a bank or other depository
which is approved by the Director of Finance.  Funds which are so
collected shall be
deposited and disbursed in conformity with appropriate regulations
prescribed by the director and may be allocated to pay for expenses
generated by the auditing requirement imposed by subdivision (b).
The expenditure of those funds shall be exempt from the provisions of
Section 925.6 of the Government Code.
   (b) All expenditures by the director shall be audited at least
once every two years by one of the following means:
   (1) By contract with a certified public accountant.
   (2) By contract with a public accountant holding a valid permit
issued by the California Board of Accountancy.
   (3) By contract with a public accounting firm.
   (4) By agreement with the Department of Finance.
   A copy of the audit shall be delivered within 30 days after the
completion thereof to the Governor, the director, and the Controller.

  SEC. 21.  Section 64696 of the Food and Agricultural Code is
amended to read:
   64696.  (a) All money that is collected by the director pursuant
to this chapter shall be deposited in any bank, or other depository
that is approved by the Director of Finance, allocated to the
purposes of this chapter only, and disbursed by the director or the
council only for the necessary expenses that are incurred by the
council and the director in carrying out the purposes and provisions
of this chapter, including expenses generated by the auditing
requirement contained in this section.  Money that is so collected
shall be deposited and disbursed in conformity with appropriate
auditing regulations that are prescribed by the director.  The
expenditure of the money is exempt from the provisions of Sections
925.6 and 16304 of the Government Code.
   (b) All expenditures by the council and the director shall be
audited at least once every two years by one of the following means:

   (1) By contract with a certified public accountant.
   (2) By contract with a public accountant holding a valid permit
issued by the California Board of Accountancy.
   (3) By contract with a public accounting firm.
   (4) By agreement with the Department of Finance.
   A copy of the audit shall be delivered within 30 days after
completion of the audit to the Governor, the director, and the
Controller.
  SEC. 22.  Section 76906 of the Food and Agricultural Code is
amended to read:
   76906.  (a) All money that is collected by the director pursuant
to this chapter shall be deposited in any bank, or other depository
that is approved by the Director of Finance, allocated to the
purposes of this chapter only, and disbursed by the director or the
council only for the necessary expenses that are incurred by the
council and the director in carrying out the purposes and provisions
of this chapter, including expenses generated by the auditing
requirement contained in this section.  Money that is so collected
shall be deposited and disbursed in conformity with appropriate
auditing regulations which are prescribed by the director.  The
expenditure of the money is exempt from Section 925.6 and 16304 of
the Government Code.
   (b) All expenditures by the council and the director shall be
audited at least once every two years by one of the following means:

   (1) By contract with a certified public account.
   (2) By contract with a public accountant holding a valid permit
issued by the California Board of Accountancy.
   (3) By contract with a public accounting firm.
   (4) By agreement with the Department of Finance.
   (c) A copy of the audit shall be delivered within 30 days after
completion of the audit to the Governor, the director, and the
Controller.
  SEC. 23.  Section 78558 of the Food and Agricultural Code is
amended to read:
   78558.  (a) All money that is collected by the council pursuant to
this chapter shall be deposited in any bank, or other depository
that is approved by the Director of Finance, allocated to the
purposes of this chapter only, and disbursed by the council, upon
approval of the secretary, only for the necessary expenses that are
incurred by the council and the secretary in carrying out the
purposes and provisions of this chapter, including expenses generated
by the auditing requirement contained in this section.  Money that
is so collected shall be deposited and disbursed in conformity with
appropriate auditing regulations adopted by the secretary.  The
expenditure of the money is exempt from Sections 925.6 and 16304 of
the Government Code.
   (b) All expenditures by the council and the secretary shall be
audited at least once every two years by one of the following means:

   (1) By contract with a certified public accountant.
   (2) By contract with a public accountant holding a valid permit
issued by the California Board of Accountancy.
   (3) By contract with a public accounting firm.
   (4) By agreement with the Department of Finance.
   (c) A copy of the audit shall be delivered by the auditor to the
council within 30 days after completion of the audit.  Upon receipt,
the council shall deliver a copy of the audit to the Governor, the
secretary, the Controller, and to any member of the public requesting
a copy.
  SEC. 24.  Section 7504 of the Government Code is amended to read:
   7504.  (a) All state and local public retirement systems shall,
not less than triennially, secure the services of an enrolled
actuary.  An enrolled actuary, for the purposes of this section,
means an actuary enrolled under subtitle C of Title III of the
federal Employee Retirement Income Security Act of 1974 (Public Law
93-406) and who has demonstrated experience in public retirement
systems.  The actuary shall perform a valuation of the system
utilizing actuarial assumptions and techniques established by the
agency that are, in the aggregate, reasonably related to the
experience and the actuary's best estimate of anticipated experience
under the system.  Any differences between the actuarial assumptions
and techniques used by the actuary that differ significantly from
those established by the agency shall be disclosed in the actuary's
report and the effect of the differences on the actuary's statement
of costs and obligations shall be shown.
   (b) All state and local public retirement systems shall secure the
services of a qualified person to perform an attest audit of the
system's financial statements.  A qualified person means any of the
following:
   (1) A person who is licensed to practice as a certified public
accountant in this state by the California Board of Accountancy.
   (2) A person who is registered and entitled to practice as a
public accountant in this state by the California Board of
Accountancy.
   (3) A county auditor in any county subject to the County Employees
Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of
Part 3 of Division 4 of Title 3).
   (4) A county auditor in any county having a pension trust and
retirement plan established pursuant to Section 53216.
   (c) All state and local public retirement systems shall submit
audited financial statements to the State Controller at the earliest
practicable opportunity within six months of the close of each fiscal
year.  However, the State Controller may delay the filing date for
reports due in the first year until the time as report forms have
been developed that, in his or her judgment, will satisfy the
requirements of this section.  The financial statements shall be
prepared in accordance with generally accepted accounting principles
in the form and manner prescribed by the State Controller.  The
penalty prescribed in Section 53895 shall be invoked for failure to
comply with this section.  Upon a satisfactory showing of good cause,
the State Controller may waive the penalty for late filing provided
by this subdivision.
   (d) The State Controller shall compile and publish a report
annually on the financial condition of all state and local public
retirement systems containing, but not limited to, the data required
in Section 7502.
  SEC. 25.  Section 7591 of the Government Code is amended to read:
   7591.  (a) The amount of fifteen million dollars ($15,000,000) is
appropriated, subject to subdivision (b), from the General Fund to
the Trade and Commerce Agency for a loan for allocation over three
years in three equal amounts to that nonprofit organization currently
named the San Diego National Sports Training Foundation, for
purposes of developing and constructing, with the participation and
advice of the United States Olympic Committee, a California Olympic
Training Center.
   (b) The loan allocations provided for by this section shall be
made no earlier than December 31, of 1990, 1991, and 1992, and shall
be made only if the San Diego National Sports Training Foundation is
able and willing by each of those dates to provide the sum of five
million dollars ($5,000,000), for purposes of developing and
constructing, with the participation and advice of the United States
Olympic Committee, a California Olympic Training Center.
   (c) Loan allocations shall be repaid in full no later than 20
years from the date of receipt at a rate of interest equal to the
average Pooled Money Investment Account rate over the period during
which any portion of an allocated amount remains outstanding.
  SEC. 26.  Section 8899.10 of the Government Code is amended to
read:
   8899.10.  The Legislature finds and declares all of the following:

   (a) (1) As demonstrated by the California earthquake of October
17, 1989, the citizens of California live under the constant shadow
of death, personal injury, and property damage from earthquakes.
   (2) During the same year as the California earthquake of October
17, 1989, there were over 15,000 earthquakes of varying magnitude
recorded in this state.
   (3) A cohesive plan to optimize current and emerging earthquake
research for the benefit of the citizens of California does not
exist.
   (4) A cohesive plan to optimize current and emerging earthquake
research is critical to protect the health and safety of the citizens
of California.
   (b) It is therefore appropriate for the State of California to
fund an Earthquake Research Evaluation Conference for the purpose of
critiquing existing and emerging technologies for earthquake research
and recommending a comprehensive plan for earthquake research in
California.
   The findings of the Earthquake Research Evaluation Conference
should be used by the Seismic Safety Commission, in collaboration
with the California Council on Science and Technology, the Office of
Competitive Technology in the Trade and Commerce Agency, and the
Division of Mines and Geology in the Department of Conservation, as
the basis for finalizing and implementing a five-year earthquake
research plan for the State of California.
  SEC. 27.  Section 8899.12 of the Government Code is amended to
read:
   8899.12.  (a) Participants in the EREC shall be selected by the
Seismic Safety Commission in collaboration with the California
Council on Science and Technology, the Division of Mines and Geology
in the Department of Conservation, and the Office of Competitive
Technology in the Trade and Commerce Agency.  EREC participants shall
include, but not be limited to, representatives from all of the
following:
   (1) Research universities.
   (2) Major professional organizations.
   (3) State agencies.
   (4) Federal agencies.
   (5) Private industry.
   (b) The organization and management of the EREC shall be the
responsibility of the Seismic Safety Commission, in collaboration
with the California Council on Science and Technology, the Division
of Mines and Geology, and the Office of Competitive Technology.
  SEC. 28.  Section 8899.16 of the Government Code is amended to
read:
   8899.16.  (a) In order to expedite the development of emerging
technologies and to encourage rapid technology transfer, grant awards
shall be made to not more than five California companies to conduct
feasibility studies that will evaluate new, innovative technologies
to improve the understanding of impending earthquakes and their
effects.
   (b) The Office of Competitive Technology in the Trade and Commerce
Agency shall implement this section with the advice of the Division
of Mines and Geology in the Department of Conservation.
   (c) The Legislature may fund additional studies in accordance with
the five-year earthquake research plan developed pursuant to Section
8899.15.
   (d) This section shall be implemented only to the extent that
funds are available for its implementation.
  SEC. 29.  Section 8899.21 of the Government Code is amended to
read:
   8899.21.  (a) For the purpose of expediting the development of
emerging technologies and encouraging rapid technology transfer, not
more than five grant awards shall be made for the 1991-92 fiscal year
to commercialize technologies that will predict earthquakes or
mitigate their impact.  Grant awards may be made to public,
nonprofit, not for profit, or private entities.
   (b) The Office of Competitive Technology in the Trade and Commerce
Agency shall implement this section with the advice of the Division
of Mines and Geology in the Department of Conservation and the
Seismic Safety Commission.  The competitive technology advisory
committee shall also advise the Office of Competitive Technology in
implementing this section.
   (c) Within 90 days of the effective date of this section, the
Office of Competitive Technology shall issue a solicitation, pursuant
to regulation, inviting project proposals to be submitted no later
than 120 days from the date of the request for proposal of
solicitation.
   (d) A project shall at least do the following:
   (1) Lead to the commercialization of technologies that will
predict earthquakes or mitigate their impact.
   (2) Include significant matching contributions from a California
company.
   (3) Meet any other requirements that the department determines are
consistent with the purposes of this section.
   (e) The Office of Competitive Technology shall evaluate project
proposals which shall at least include a peer review and an oral
review.  The Secretary of Trade and Commerce upon recommendation from
the Office of Competitive Technology, shall select projects for
funding which best achieve the purposes of this section.
   (f) A grantee shall submit quarterly progress reports and
participate in oral project reviews during the term of the grant.
   (g) Projects shall be eligible for additional grant funds only
upon successful project performance and the availability of
additional earthquake research development program funds.
   (h) The Trade and Commerce Agency may adopt regulations to
implement the grant program authorized by this section.  The Trade
and Commerce Agency shall adopt these regulations as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1, and for purposes of that chapter, including Section
11349.6, the adoption of the regulations shall be considered by the
Office of Administrative Law to be necessary for the immediate
preservation of the public peace, health and safety, and general
welfare.  Notwithstanding subdivision (e) of Section 11346.1, the
regulations shall be repealed within 180 days after their effective
date, unless the Trade and Commerce Agency complies with Chapter 3.5
(commencing with Section 11340) of Part 1 as provided in subdivision
(e) of Section 11346.1.  Upon issuing the request for proposal, the
office shall publish this fact along with the deadline for grant
proposals in the newspapers with the greatest circulation in the
major cities in the state, as determined by the office.  Upon issuing
the request for proposal, the office shall also transmit this
information to the Secretary of the Senate and the Chief Clerk of the
Assembly for publication in the journals of each house of the
Legislature.  The request for proposal shall contain a clear
description of the criteria to be used to select the projects that
are to receive funding pursuant to this chapter.
  SEC. 30.  Section 11126 of the Government Code is amended to read:

   11126.  (a) (1) Nothing in this article shall be construed to
prevent a state body from holding closed sessions during a regular or
special meeting to consider the appointment, employment, evaluation
of performance, or dismissal of a public employee or to hear
complaints or charges brought against that employee by another person
or employee unless the employee requests a public hearing.
   (2) As a condition to holding a closed session on the complaints
or charges to consider disciplinary action or to consider dismissal,
the employee shall be given written notice of his or her right to
have a public hearing, rather than a closed session, and that notice
shall be delivered to the employee personally or by mail at least 24
hours before the time for holding a regular or special meeting.  If
notice is not given, any disciplinary or other action taken against
any employee at the closed session shall be null and void.
   (3) The state body also may exclude from any public or closed
session, during the examination of a witness, any or all other
witnesses in the matter being investigated by the state body.
   (4) Following the public hearing or closed session, the body may
deliberate on the decision to be reached in a closed session.
   (b) For the purposes of this section, "employee" shall not include
any person who is elected to, or appointed to a public office by,
any state body.  However, officers of the California State University
who receive compensation for their services, other than per diem and
ordinary and necessary expenses, shall, when engaged in that
capacity, be considered employees.  Furthermore, for purposes of this
section, the term employee shall include a person exempt from civil
service pursuant to subdivision (e) of Section 4 of Article VII of
the California Constitution.
   (c) Nothing in this article shall be construed to do any of the
following:
   (1) Prevent state bodies that administer the licensing of persons
engaging in businesses or professions from holding closed sessions to
prepare, approve, grade, or administer examinations.
   (2) Prevent an advisory body of a state body that administers the
licensing of persons engaged in businesses or professions from
conducting a closed session to discuss matters that the advisory body
has found would constitute an unwarranted invasion of the privacy of
an individual licensee or applicant if discussed in an open meeting,
provided the advisory body does not include a quorum of the members
of the state body it advises.  Those matters may include review of an
applicant's qualifications for licensure and an inquiry specifically
related to the state body's enforcement program concerning an
individual licensee or applicant where the inquiry occurs prior to
the filing of a civil, criminal, or administrative disciplinary
action against the licensee or applicant by the state body.
   (3) Prohibit a state body from holding a closed session to
deliberate on a decision to be reached in a proceeding required to be
conducted pursuant to Chapter 5 (commencing with Section 11500) of
Part 1 of Division 3 of Title 2 or similar provisions of law.
   (4) Grant a right to enter any correctional institution or the
grounds of a correctional institution where that right is not
otherwise granted by law, nor shall anything in this article be
construed to prevent a state body from holding a closed session when
considering and acting upon the determination of a term, parole, or
release of any individual or other disposition of an individual case,
or if public disclosure of the subjects under discussion or
consideration is expressly prohibited by statute.
   (5) Prevent any closed session to consider the conferring of
honorary degrees, or gifts, donations, and bequests that the donor or
proposed donor has requested in writing to be kept confidential.
   (6) Prevent the Alcoholic Beverage Control Appeals Board from
holding a closed session for the purpose of holding a deliberative
conference as provided in Section 11125.
   (7) (A) Prevent a state body from holding closed sessions with its
negotiator prior to the purchase, sale, exchange, or lease of real
property by or for the state body to give instructions to its
negotiator regarding the price and terms of payment for the purchase,
sale, exchange, or lease.
   (B) However, prior to the closed session, the state body shall
hold an open and public session in which it identifies the real
property or real properties that the negotiations may concern and the
person or persons with whom its negotiator may negotiate.
   (C) For purposes of this paragraph, the negotiator may be a member
of the state body.
   (D) For purposes of this paragraph, "lease" includes renewal or
renegotiation of a lease.
   (E) Nothing in this paragraph shall preclude a state body from
holding a closed session for discussions regarding eminent domain
proceedings pursuant to subdivision (e).
   (8) Prevent the California Postsecondary Education Commission from
holding closed sessions to consider matters pertaining to the
appointment or termination of the Director of the California
Postsecondary Education Commission.
   (9) Prevent the Council for Private Postsecondary and Vocational
Education from holding closed sessions to consider matters pertaining
to the appointment or termination of the Executive Director of the
Council for Private Postsecondary and Vocational Education.
   (10) Prevent the Franchise Tax Board from holding closed sessions
for the purpose of discussion of confidential tax returns or
information the public disclosure of which is prohibited by law, or
from considering matters pertaining to the appointment or removal of
the Executive Officer of the Franchise Tax Board.
   (11) Require the Franchise Tax Board to notice or disclose any
confidential tax information considered in closed sessions, or
documents executed in connection therewith, the public disclosure of
which is prohibited pursuant to Article 2 (commencing with Section
19542) of Chapter 7 of Part 10.2 of the Revenue and Taxation Code.
   (12) Prevent the Board of Corrections from holding closed sessions
when considering reports of crime conditions under Section 6027 of
the Penal Code.
   (13) Prevent the State Air Resources Board from holding closed
sessions when considering the proprietary specifications and
performance data of manufacturers.
   (14) Prevent the State Board of Education or the Superintendent of
Public Instruction, or any committee advising the board or the
superintendent, from holding closed sessions on those portions of its
review of assessment instruments pursuant to Chapter 5 (commencing
with Section 60600) of, or pursuant to Chapter 8 (commencing with
Section 60850) of, Part 33 of the Education Code during which actual
test content is reviewed and discussed.  The purpose of this
provision is to maintain the confidentiality of the assessments under
review.
   (15) Prevent the California Integrated Waste Management Board or
its auxiliary committees from holding closed sessions for the purpose
of discussing confidential tax returns, discussing trade secrets or
confidential or proprietary information in its possession, or
discussing other data, the public disclosure of which is prohibited
by law.
   (16) Prevent a state body that invests retirement, pension, or
endowment funds from holding closed sessions when considering
investment decisions.  For purposes of consideration of shareholder
voting on corporate stocks held by the state body, closed sessions
for the purposes of voting may be held only with respect to election
of corporate directors, election of independent auditors, and other
financial issues that could have a material effect on the net income
of the corporation.  For the purpose of real property investment
decisions that may be considered in a closed session pursuant to this
paragraph, a state body shall also be exempt from the provisions of
paragraph (7) relating to the identification of real properties prior
to the closed session.
   (17) Prevent a state body, or boards, commissions, administrative
officers, or other representatives that may properly be designated by
law or by a state body, from holding closed sessions with its
representatives in discharging its responsibilities under Chapter 10
(commencing with Section 3500) of Division 4 of Title 1 as the
sessions relate to salaries, salary schedules, or compensation paid
in the form of fringe benefits.  For the purposes enumerated in the
preceding sentence, a state body may also meet with a state
conciliator who has intervened in the proceedings.
   (d) (1) Notwithstanding any other provision of law, any meeting of
the Public Utilities Commission at which the rates of entities under
the commission's jurisdiction are changed shall be open and public.

   (2) Nothing in this article shall be construed to prevent the
Public Utilities Commission from holding closed sessions to
deliberate on the institution of proceedings, or disciplinary actions
against any person or entity under the jurisdiction of the
commission.
   (e) (1) Nothing in this article shall be construed to prevent a
state body, based on the advice of its legal counsel, from holding a
closed session to confer with, or receive advice from, its legal
counsel regarding pending litigation when discussion in open session
concerning those matters would prejudice the position of the state
body in the litigation.
   (2) For purposes of this article, all expressions of the
lawyer-client privilege other than those provided in this subdivision
are hereby abrogated.  This subdivision is the exclusive expression
of the lawyer-client privilege for purposes of conducting closed
session meetings pursuant to this article.  For purposes of this
subdivision, litigation shall be considered pending when any of the
following circumstances exist:
   (A) An adjudicatory proceeding before a court, an administrative
body exercising its adjudicatory authority, a hearing officer, or an
arbitrator, to which the state body is a party, has been initiated
formally.
   (B) (i) A point has been reached where, in the opinion of the
state body on the advice of its legal counsel, based on existing
facts and circumstances, there is a significant exposure to
litigation against the state body.
   (ii) Based on existing facts and circumstances, the state body is
meeting only to decide whether a closed session is authorized
pursuant to clause (i).
   (C) (i) Based on existing facts and circumstances, the state body
has decided to initiate or is deciding whether to initiate
litigation.
                          (ii) The legal counsel of the state body
shall prepare and submit to it a memorandum stating the specific
reasons and legal authority for the closed session.  If the closed
session is pursuant to paragraph (1), the memorandum shall include
the title of the litigation.  If the closed session is pursuant to
subparagraph (A) or (B), the memorandum shall include the existing
facts and circumstances on which it is based.  The legal counsel
shall submit the memorandum to the state body prior to the closed
session, if feasible, and in any case no later than one week after
the closed session.  The memorandum shall be exempt from disclosure
pursuant to Section 6254.25.
   (iii) For purposes of this subdivision, "litigation" includes any
adjudicatory proceeding, including eminent domain, before a court,
administrative body exercising its adjudicatory authority, hearing
officer, or arbitrator.
   (iv) Disclosure of a memorandum required under this subdivision
shall not be deemed as a waiver of the lawyer-client privilege, as
provided for under Article 3 (commencing with Section 950) of Chapter
4 of Division 8 of the Evidence Code.
   (f) In addition to subdivisions (a), (b), and (c), nothing in this
article shall be construed to do any of the following:
   (1) Prevent a state body operating under a joint powers agreement
for insurance pooling from holding a closed session to discuss a
claim for the payment of tort liability or public liability losses
incurred by the state body or any member agency under the joint
powers agreement.
   (2) Prevent the examining committee established by the State Board
of Forestry and Fire Protection, pursuant to Section 763 of the
Public Resources Code, from conducting a closed session to consider
disciplinary action against an individual professional forester prior
to the filing of an accusation against the forester pursuant to
Section 11503.
   (3) Prevent an administrative committee established by the
California Board of Accountancy pursuant to Section 5020 of the
Business and Professions Code from conducting a closed session to
consider disciplinary action against an individual accountant prior
to the filing of an accusation against the accountant pursuant to
Section 11503.  Nothing in this article shall be construed to prevent
an examining committee established by the California Board of
Accountancy pursuant to Section 5023 of the Business and Professions
Code from conducting a closed hearing to interview an individual
applicant or accountant regarding the applicant's qualifications.
   (4) Prevent a state body, as defined in Section 11121.2, from
conducting a closed session to consider any matter that properly
could be considered in closed session by the state body whose
authority it exercises.
   (5) Prevent a state body, as defined in Section 11121.7, from
conducting a closed session to consider any matter that properly
could be considered in a closed session by the body defined as a
state body pursuant to Section 11121 or 11121.2.
   (6) Prevent a state body, as defined in Section 11121.8, from
conducting a closed session to consider any matter that properly
could be considered in a closed session by the state body it advises.

   (7) Prevent the State Board of Equalization from holding closed
sessions for either of the following:
   (A) When considering matters pertaining to the appointment or
removal of the Executive Secretary of the State Board of
Equalization.
   (B) For the purpose of hearing confidential taxpayer appeals or
data, the public disclosure of which is prohibited by law.
   (8) Require the State Board of Equalization to disclose any action
taken in closed session or documents executed in connection with
that action, the public disclosure of which is prohibited by law
pursuant to Sections 15619 and 15641 of this code and Sections 833,
7056, 8255, 9255, 11655, 30455, 32455, 38705, 38706, 43651, 45982,
46751, 50159, 55381, and 60609 of the Revenue and Taxation Code.
   (9) Prevent the California Earthquake Prediction Evaluation
Council, or other body appointed to advise the Director of the Office
of Emergency Services or the Governor concerning matters relating to
volcanic or earthquake predictions, from holding closed sessions
when considering the evaluation of possible predictions.
   (g) This article shall not prevent either of the following:
   (1) The Teachers' Retirement Board or the Board of Administration
of the Public Employees' Retirement System from holding closed
sessions when considering matters pertaining to the recruitment,
appointment, employment, or removal of the chief executive officer or
when considering matters pertaining to the recruitment or removal of
the Chief Investment Officer of the State Teachers' Retirement
System or the Public Employees' Retirement System.
   (2) The Commission on Teacher Credentialing from holding closed
sessions when considering matters relating to the recruitment,
appointment, or removal of its executive director.
  SEC. 31.  Section 14998.4 of the Government Code is amended to
read:
   14998.4.  (a) The commission shall meet at least quarterly and
shall select a chairperson and a vice chairperson from among its
members.  The vice chairperson shall act as chairperson in the
chairperson's absence.
   (b) Each commission member shall serve without compensation but
shall be reimbursed for traveling outside the county in which he or
she resides to attend meetings.
   (c) The commission shall work to encourage motion picture and
television filming in California and to that end, shall exercise all
of the powers provided in this chapter.
   (d) The commission shall make recommendations to the Legislature,
the Governor, the Trade and Commerce Agency, and other state agencies
on legislative or administrative actions that may be necessary or
helpful to maintain and improve the position of the state's motion
picture industry in the national and world markets.
   (e) In addition, the commission shall do all of the following:
   (1) Adopt guidelines for a standardized permit to be used by state
agencies and the director.
   (2) Approve or modify the marketing and promotion plan developed
by the director pursuant to subdivision (d) of Section 14998.9 to
promote filmmaking in the state.
   (3) Conduct workshops and trade shows.
   (4) Provide expertise in promotional activities.
   (5) Hold hearings.
   (6) Adopt its own operational rules and procedures.
   (7) Counsel the Legislature and the Governor on issues relating to
the motion picture industry.
  SEC. 32.  The heading of Chapter 1 (commencing with Section 15310)
of Part 6.7 of Division 3 of Title 2 of the Government Code is
amended to read:

      CHAPTER 1.  TRADE AND COMMERCE AGENCY

  SEC. 33.  Section 15311 of the Government Code is amended to read:

   15311.  The Trade and Commerce Agency is administered by the
Secretary of Trade and Commerce who shall be appointed by the
Governor with the advice and consent of the Senate, and who shall be
paid a salary at the amount prescribed under Section 11550.
  SEC. 34.  Section 15363.6 of the Government Code is amended to
read:
   15363.6.  The secretary shall have the following responsibilities:

   (a) Coordinating the various trade, investment, and tourism
activities of the Trade and Commerce Agency to ensure that the
resources that the state has invested in these programs are used
effectively and efficiently and that they foster the state's
reputation as a source of high quality, cost-effective goods and
services including tourism destinations.
   (b) Coordinating, on behalf of the Governor, the use of the
overseas trade offices by any state export program not under the
California State World Trade Commission, such as those that are
operated by the Department of Food and Agriculture and the California
Energy Commission, and by any state agency which may have occasion
to need the services of the overseas trade offices in carrying out
that agency's official duties and responsibilities.
   (c) Reporting to the Governor and the Legislature on an annual
basis about the policies, plans, budgeting, and accomplishments of
the agency and its programs.
   (d) In his or her capacity as a member of the Governor's cabinet,
coordinating the development of a state policy on economic
development and trade, and advising the Governor and members of the
cabinet of the potential impacts of regulations on the state's
business, economy, and job base.  The initial policy and
implementation strategy shall be included as a part of the secretary'
s first annual report to the Governor and the Legislature following
enactment of this chapter.  Each year thereafter, the secretary's
annual report shall discuss economic development and trade policies
including accomplishments and needed modifications.
   (e) Evaluating, at his or her discretion, the findings and
determinations required of any state agency which proposes to adopt
regulations under Article 5 (commencing with Section 11346) of
Chapter 3.5 of Part 1, including economic and cost impacts, reporting
requirements, and alternatives analyses.  The secretary shall,
during the written comment period specified pursuant to paragraph (9)
of subdivision (a) of Section 11346.5, submit written comments into
the record of the agency which proposes to adopt those regulations in
those instances when the secretary determines that the contents of
the notice of the proposed action or the supporting analysis and
initial statement of reasons do not sufficiently support the findings
and determinations of the agency.  The secretary may, at his or her
discretion, comment on other aspects of the proposed action that
significantly impact the state's business, industry, economy, or job
base, including the cumulative effects of the proposed action that
significantly impact the state's business, industry, economy, or job
base, including the cumulative impacts of the proposed action
considered along with regulatory requirements in place at the
federal, state, and local levels.
  SEC. 35.  Section 26509 of the Government Code is amended to read:

   26509.  (a) Notwithstanding any other provision of law, including
any provision making records confidential, and including Title 1.8
(commencing with Section 1798) of Part 4 of Division 3 of the Civil
Code, the district attorney shall be given access to, and may make
copies of, any complaint against a person subject to regulation by a
consumer-oriented state agency and any investigation of the person
made by the agency, where that person is being investigated by the
district attorney regarding possible consumer fraud.
   (b) Where the district attorney does not take action with respect
to the complaint or investigation, the material shall remain
confidential.
   (c) Where the release of the material would jeopardize an
investigation or other duties of a consumer-oriented state agency,
the agency shall have discretion to delay the release of the
information.
   (d) As used in this section, a consumer-oriented state agency is
any state agency that regulates the licensure, certification, or
qualification of persons to practice a profession or business within
the state, where the regulation is for the protection of consumers
who deal with the professionals or businesses.  It includes, but is
not limited to, all of the following:
   (1) The Dental Board of California.
   (2) The Medical Board of California.
   (3) The State Board of Optometry.
   (4) The California State Board of Pharmacy.
   (5) The Veterinary Medical Board.
   (6) The California Board of Accountancy.
   (7) The California Board of Architectural Examiners.
   (8) The State Board of Barbering and Cosmetology.
   (9) The Board for Professional Engineers and Land Surveyors.
   (10) The Contractors' State License Board.
   (11) The Funeral Directors and Embalmers Program.
   (12) The Structural Pest Control Board.
   (13) The Bureau of Home Furnishings and Thermal Insulation.
   (14) The Board of Registered Nursing.
   (15) The State Board of Fabric Care.
   (16) The State Board of Chiropractic Examiners.
   (17) The Board of Behavioral Science Examiners.
   (18) The State Athletic Commission.
   (19) The Cemetery Program.
   (20) The State Board of Guide Dogs for the Blind.
   (21) The Bureau of Security and Investigative Services.
   (22) The Court Reporters Board of California.
   (23) The Board of Vocational Nurse and Psychiatric Technician
Examiners of the State of California.
   (24) The California State Board of Landscape Architects.
   (25) The Osteopathic Medical Board of California.
   (26) The Division of Investigation.
   (27) The Bureau of Automotive Repair.
   (28) The State Board of Registration for Geologists and
Geophysicists.
   (29) The State Board of Nursing Home Administrators.
   (30) The Department of Alcoholic Beverage Control.
   (31) The Department of Insurance.
   (32) The Public Utilities Commission.
   (33) The State Department of Health Services.
   (34) The New Motor Vehicle Board.
  SEC. 36.  Section 26915 of the Government Code is amended to read:

   26915.  (a) Any requirement that an audit be performed by the
county auditor may, at the election of the board of supervisors, also
be performed by a county employee or officer who meets both of the
following qualifications:
   (1) The person possesses a valid certificate issued by the
California Board of Accountancy and a permit authorizing the person
to practice as a certified public accountant or as a public
accountant.
   (2) The employee or officer is independent in accordance with Rule
101 of the American Institute of Certified Public Accountants' Code
of Professional Conduct.
   (b) The election made by the board of supervisors pursuant to
subdivision (a) may be in effect for no more than two years after the
date that the vote is taken by the board, but the election may be
renewed upon expiration.
   (c) This section shall only be applicable in the County of Orange.

   (d) Nothing in this section is intended to preclude a county
auditor from performing his or her statutorily prescribed duties.
  SEC. 37.  Section 26945 of the Government Code is amended to read:

   26945.  No person shall hereafter be elected or appointed to the
office of county auditor of any county unless the person meets at
least one of the following criteria:
   (a) The person possesses a valid certificate issued by the
California Board of Accountancy under Chapter 1 (commencing with
Section 5000) of Division 3 of the Business and Professions Code
showing the person to be, and a permit authorizing the person to
practice as, a certified public accountant or as a public accountant.

   (b) The person possesses a baccalaureate degree from an accredited
university, college, or other four-year institution, with a major in
accounting or its equivalent, as described in subdivision (a) of
Section 5081.1 of the Business and Professions Code, and has served
within the last five years in a senior fiscal management position in
a county, city, or other public agency, a private firm, or a
nonprofit organization, dealing with similar fiscal responsibilities,
for a continuous period of not less than three years.
   (c) The person possesses a certificate issued by the Institute of
Internal Auditors showing the person to be a designated professional
internal auditor, with a minimum of 16 college semester units, or
their equivalent, in accounting, auditing, or finance.
   (d) The person has served as county auditor, chief deputy county
auditor, or chief assistant county auditor for a continuous period of
not less than three years.
  SEC. 38.  Section 27000.7 of the Government Code is amended to
read:
   27000.7.  (a) No person shall be eligible for election or
appointment to the office of county treasurer, county tax collector,
or county treasurer-tax collector of any county unless that person
meets at least one of the following criteria:
   (1) The person has served in a senior financial management
position in a county, city, or other public agency dealing with
similar financial responsibilities for a continuous period of not
less than three years, including, but not limited to, treasurer, tax
collector, auditor, auditor-controller, or the chief deputy or an
assistant in those offices.
   (2) The person possesses a valid baccalaureate, masters, or
doctoral degree from an accredited college or university in any of
the following major fields of study:  business administration, public
administration, economics, finance, accounting, or a related field,
with a minimum of 16 college semester units, or their equivalent, in
accounting, auditing, or finance.
   (3) The person possesses a valid certificate issued by the
California Board of Accountancy pursuant to Chapter 1 (commencing
with Section 5000) of Division 3 of the Business and Professions
Code, showing that person to be, and a permit authorizing that person
to practice as, a certified public accountant.
   (4) The person possesses a valid charter issued by the Institute
of Chartered Financial Analysts showing the person to be designated a
Chartered Financial Analyst, with a minimum of 16 college semester
units, or their equivalent, in accounting, auditing, or finance.
   (5) The person possesses a valid certificate issued by the
Treasury Management Association showing the person to be designated a
Certified Cash Manager, with a minimum of 16 college semester units,
or their equivalent, in accounting, auditing, or finance.
   (b) This section shall only apply to any person duly elected or
appointed as a county treasurer, county tax collector, or county
treasurer-tax collector on or after January 1, 1998.
  SEC. 39.  Section 53131 of the Government Code is amended to read:

   53131.  As used in this article:
   (a) "Qualified state and local government auditors" means those
auditors employed by state and local governments that meet the
independence requirements set forth in the federal Standards for
Audit of Governmental Organizations, Programs, Activities and
Functions.
   (b) "Independent public accountants" means a certified public
accountant, or a public accountant who is licensed by the California
Board of Accountancy who holds a valid permit to practice
accountancy.
   (c) "Local agency" means a city, county, city and county, special
district, joint-powers agency, public corporation, nonprofit
corporation, or any other agency that is eligible to receive federal
block grant funds.
   (d) "State department" means that state organization designated by
law or agreement that allocates block grant funds to local agencies
or is otherwise responsible for administering block grant funds.
   (e) "Financial and compliance audit" means an audit that complies
with the financial and compliance audit requirements of the Standards
for Audit of Governmental Organizations, Programs, Activities and
Functions published by the United States General Accounting Office.
   Organization wide financial and compliance audits required by
Federal Office of Management and Budget Circulars A-102 and A-110 are
acceptable for this purpose.
  SEC. 40.  Section 68112 of the Government Code is amended to read:

   68112.  (a) On or before March 1, 1992, each superior and
municipal court in each county, in consultation with the local bar,
shall prepare and submit to the Judicial Council for review and
approval a trial court coordination plan designed to achieve maximum
utilization of judicial and other court resources and statewide cost
reductions in court operations of at least 3 percent in the 1992-93
fiscal year, a further 2 percent in the 1993-94 fiscal year, and a
further 2 percent in the 1994-95 fiscal year, as applicable.  The
cost reduction shall be based on the prior year actual expenditures,
plus any amount reduced from the budget for court operations by a
county as a result of any reduction in state funding made pursuant to
Section 13308, increased by the percentage change in population for
the prior calendar year and the Trade and Commerce Agency implicit
price deflator for state and local government for the prior calendar
year.  The coordination plan for each court shall be reviewed and
approved by the Judicial Council on or before July 1, 1992.
Thereafter, commencing in 1995 and every two years thereafter, courts
in each county shall prepare, in consultation with the local bar,
and submit a trial court coordination plan to the Judicial Council on
or before March 1, for review and approval by July 1.  The plans
shall comply with rules promulgated by the Judicial Council and shall
be designed to achieve maximum utilization of judicial and other
resources to accomplish increased efficiency in court operations and
increased service to the public.  Any plan disapproved by the
Judicial Council shall be revised and resubmitted within 60 days of
notification of disapproval.  The Judicial Council may by rule exempt
courts from the requirement of filing a new coordination plan for
any year if all courts in the county have (1) totally consolidated
administrative functions under a single administrative entity, and
(2) adopted and implemented a coordination plan in which all courts
share each other's work so that cases in all of the county's courts
are substantially assigned without regard to whether a judge is on
the superior court or the municipal court, and which provides for
procedures that implement that sharing of work.
   (b) The coordination plan shall take into consideration the
elements specified in standards and rules adopted by the Judicial
Council and applicable case processing time standards adopted by the
Judicial Council.  The standards adopted by the Judicial Council
shall include, but not be limited to, the following:
   (1) The use of blanket cross-assignments allowing judges to hear
civil, criminal, or other types of cases within the jurisdiction of
another court.
   (2) The coordinated or joint use of subordinate judicial officers
to hear or try matters.
   (3) The coordinated, joint use, sharing or merger of court support
staff among trial courts within a county or across counties.  In a
county with a population of less than 100,000 the coordination plan
need not involve merger of superior and justice court staffs if the
court can reasonably demonstrate that the maintenance of separate
administrative staffs would be more cost-effective and provide better
service.
   (4) The assignment of civil, criminal, or other types of cases for
hearing or trial, regardless of jurisdictional boundaries, to any
available judicial officer.
   (5) The assignment of any type of case to a judge for all purposes
commencing with the filing of the case and regardless of
jurisdictional boundaries.
   (6) The establishment of separate calendars or divisions to hear a
particular type of case.
   (7) In rural counties, the use of all court facilities for
hearings and trials of all types of cases and to accept for filing
documents in any case before any court in the county participating in
the coordination plan.
   (8) The coordinated or joint use of alternative dispute resolution
programs such as arbitration.
   (9) The unification of the trial courts within a county to the
maximum extent permitted by the California Constitution.
   (10) The joint development of automated accounting and
case-processing systems, including joint use of moneys available
under Section 68090.8.
   (c) In preparing coordination plans a court or courts in a county
may petition the Judicial Council to permit division of the court or
courts into smaller administrative units where a courtwide plan would
impose an undue burden because of the number of judges or the
physical location of the divisions of the court or courts.
   (d) In preparing coordination plans, the courts are strongly
encouraged to develop a plan that includes all superior and municipal
courts in the county.
  SEC. 41.  Section 11998.1 of the Health and Safety Code is amended
to read:
   11998.1.  It is the intent of the Legislature that the following
long-term five-year goals be achieved:
   (a) With regard to education and prevention of drug and alcohol
abuse programs, the following goals:
   (1) Drug and alcohol abuse education has been included within the
mandatory curriculum in kindergarten and grades 1 to 12, inclusive,
in every public school in California.
   (2) Basic training on how to recognize, and understand what to do
about, drug and alcohol abuse has been provided to administrators and
all teachers of kindergarten and grades 1 to 12, inclusive.
   (3) All school counselors and school nurses have received
comprehensive drug and alcohol abuse training.
   (4) Each school district with kindergarten and grades 1 to 12,
inclusive, has appointed a drug and alcohol abuse advisory team of
school administrators, teachers, counselors, students, parents,
community representatives, and health care professionals, all of whom
have expertise in drug and alcohol abuse prevention.  The team
coordinates with and receives consultation from the county alcohol
and drug program administrators.
   (5) Every school board member has received basic drug and alcohol
abuse information.
   (6) Each school district has a drug and alcohol abuse specialist
to assist the individual schools.
   (7) Each school in grades 7 to 12, inclusive, has student peer
group drug and alcohol abuse programs.
   (8) Every school district with kindergarten and grades 1 to 12,
inclusive, has updated written drug and alcohol abuse policies and
procedures including disciplinary procedures which will be given to
every school employee, every student, and every parent.
   (9) The California State University and the University of
California have evaluated and, if feasible, established educational
programs and degrees in the area of drug and alcohol abuse.
   (10) Every school district with kindergarten and grades 1 to 12,
inclusive, has an established parent teachers group with drug and
alcohol abuse prevention goals.
   (11) Every school district has instituted a drug and alcohol abuse
education program for parents.
   (12) Drug and alcohol abuse training has been imposed as a
condition for teacher credentialing and license renewal, and
knowledge on the issue is measured on the California Basic Education
Skills Test.
   (13) Drug and alcohol abuse knowledge has been established as a
component on standardized competency tests as a requirement for
graduation.
   (14) Every school district has established a parent support group.


         (15) Every school district has instituted policies that
address the special needs of children who have been rehabilitated for
drug or alcohol abuse problems and who are reentering school.  These
policies shall consider the loss of schooltime, the loss of academic
credits, and the sociological problems associated with drug and
alcohol abuse, its rehabilitation, and the educational delay it
causes.
   (16) The number of drug and alcohol abuse related incidents on
school grounds has decreased by 20 percent.
   (b) With regard to community programs, the following goals:
   (1) Every community-based social service organization that
receives state and local financial assistance has drug and alcohol
abuse information available for clients.
   (2) All neighborhood watch, business watch, and community conflict
resolution programs have included drug and alcohol abuse prevention
efforts.
   (3) All community-based programs that serve schoolaged children
have staff trained in drug and alcohol abuse and give a clear, drug-
and alcohol-free message.
   (c) With regard to drug and alcohol abuse programs of the media,
the following goals:
   (1) The state has established a comprehensive media campaign that
involves all facets of the drug and alcohol abuse problem, including
treatment, education, prevention, and intervention that will result
in increasing the public's knowledge and awareness of the detrimental
effects of alcohol and drug use, reducing the use of alcohol and
drugs, and increasing healthy lifestyle choices.
   (2) The department on a statewide basis, and the county board of
supervisors or its designees at the local level, have:
   (A) Assisted the entertainment industry in identifying ways to use
the entertainment industry effectively to encourage lifestyles free
of substance abuse.
   (B) Assisted the manufacturers of drug and alcohol products in
identifying ways to use product advertising effectively to discourage
substance abuse.
   (C) Assisted television stations in identifying ways to use
television programming effectively to encourage lifestyles free of
substance abuse.
   (3) A statewide cooperative fundraising program with recording
artists and the entertainment industry has been encouraged to fund
drug and alcohol abuse prevention efforts in the state.
   (d) With regard to drug and alcohol abuse health care programs,
the following goals:
   (1) The number of drug and alcohol abuse-related medical
emergencies has decreased by 4 percent per year.
   (2) All general acute care hospitals and AIDS medical service
providers have provided information to their patients on drug and
alcohol abuse.
   (3) The Medical Board of California, the Psychology Examining
Committee, the Board of Registered Nursing, and the Board of
Behavioral Science Examiners have developed and implemented the
guidelines or regulations requiring drug and alcohol abuse training
for their licensees, and have developed methods of providing training
for those professionals.
   (e) With regard to private sector drug and alcohol abuse programs,
the following goals:
   (1) A significant percentage of businesses in the private sector
have developed personnel policies that discourage drug and alcohol
abuse and encourage supervision, training, and employee education.
   (2) Noteworthy and publicly recognized figures and private
industry have been encouraged to sponsor fundraising events for drug
and alcohol abuse prevention.
   (3) Every public or private athletic team has been encouraged to
establish policies forbidding drug and alcohol abuse.
   (4) The private sector has established personnel policies that
discourage drug and alcohol abuse but encourage treatment for those
employees who require this assistance.
   (f) With regard to local government drug and alcohol abuse
programs, the following goals:
   (1) Every county has a five-year master plan to eliminate drug and
alcohol abuse developed jointly by the county-designated alcohol and
drug program administrators, reviewed jointly by the advisory boards
set forth in paragraph (2), and approved by the board of
supervisors.  For those counties in which the alcohol and drug
programs are jointly administered, the administrator shall develop
the five-year master plan.  To the degree possible, all existing
local plans relating to drug or alcohol abuse shall be incorporated
into the master plan.
   (2) Every county has an advisory board on alcohol problems and an
advisory board on drug programs.  The membership of these advisory
boards is representative of the county's population and is
geographically balanced.  To the maximum extent possible the county
advisory board on alcohol problems and the county advisory board on
drug programs will have representatives of the following:
   (A) Law enforcement.
   (B) Education.
   (C) The treatment and recovery community, including a
representative with expertise in AIDS treatment services.
   (D) Judiciary.
   (E) Students.
   (F) Parents.
   (G) Private industry.
   (H) Other community organizations involved in drug and alcohol
services.
   (I) A representative of organized labor responsible for the
provision of Employee Assistance Program services.
   If any of these areas is not represented on the advisory bodies,
the administrator designated in paragraph (1) shall solicit input
from a representative of the nonrepresented area prior to the
development of a master plan pursuant to paragraph (1).
   (3) Every county public social service agency has established
policies that discourage drug and alcohol abuse and encourage
treatment and recovery services when necessary.
   (4) Every local unit of government has an employee assistance
program that addresses drug and alcohol abuse problems.
   (5) Every local unit of government has considered the potential
for drug and alcohol abuse problems when developing zoning ordinances
and issuing conditional use permits.
   (6) Every county master plan includes treatment and recovery
services.
   (6.5) Every county master plan includes specialized provisions to
ensure optimum alcohol and drug abuse service delivery for
handicapped and disabled persons.
   (7) Every local unit of government has been encouraged to
establish an employee assistance program that includes the treatment
of drug and alcohol abuse-related programs.
   (8) Every local governmental social service provider has
established a referral system under which clients with drug and
alcohol abuse problems can be referred for treatment.
   (9) Every county drug and alcohol abuse treatment or recovery
program that serves women gives priority for services to pregnant
women.
   (10) Every alcohol and drug abuse program provides acquired immune
deficiency syndrome (AIDS) information to all program participants.

   (g) With regard to state and federal government drug and alcohol
abuse programs, the following goals:
   (1) The Department of Alcoholic Beverage Control has informed all
alcohol retailers of the laws governing liquor sales and has provided
training available to all personnel selling alcoholic beverages, on
identifying and handling minors attempting to purchase alcohol.
   (2) The Office of Criminal Justice Planning has required all
applicants for crime prevention and juvenile justice and delinquency
prevention funds to include drug and alcohol abuse prevention efforts
in their programs.
   (3) All county applications for direct or indirect drug and
alcohol services funding from the department include a prevention
component.
   (4) The Superintendent of Public Instruction has employed drug and
alcohol abuse school prevention specialists and assisted school
districts with the implementation of prevention programs.
   (5) The State Department of Mental Health has staff trained in
drug and alcohol abuse prevention who can assist local mental health
programs with prevention efforts.
   (6) The Department of the California Highway Patrol, as permitted
by the United States Constitution, has established routine statewide
sobriety checkpoints for driving while under the influence.
   (7) The Department of Corrections and the Department of the Youth
Authority have provided drug and alcohol abuse education and
prevention services for all inmates, wards, and parolees.  Both
departments have provided drug and alcohol abuse treatment services
for any inmate, ward, or parolee determined to be in need of these
services, or who personally requests these services.
   (8) The Department of Motor Vehicles has distributed prevention
materials with each driver's license or certificate of renewal and
each vehicle registration renewal mailed by the Department of Motor
Vehicles.
   (9) Federal prevention programs have been encouraged to follow the
master plan.
   (10) State licensing and program regulations for drug and alcohol
abuse treatment programs have been consolidated and administered by
one state agency.
   (11) State treatment funding priorities have been included to
specially recognize the multiple diagnosed client who would be
eligible for services from more than one state agency.
   (12) Every state agency has formalized employee assistance
programs that include the treatment of drug and alcohol abuse-related
problems.
   (13) The state master plan includes specialized provisions to
ensure optimum drug and alcohol abuse service delivery for
handicapped and disabled persons.
   (14) The Trade and Commerce Agency, in coordination with private
industry, encourages the creation of employee alcohol and drug abuse
prevention programs in the workplace or provides information to
employees on treatment or recovery programs that are available to
them.
   (h) With regard to private sector direct service providers, the
following goals:
   (1) Drinking drivers programs have provided clear measurements of
successful completion of the program to the courts for each
court-ordered client.
   (2) Sufficient drug and alcohol treatment and recovery services
exist throughout the state to meet all clients' immediate and
long-range needs.
   (3) Each county to the extent possible provides localized alcohol
and drug treatment and recovery services designed for individuals
seeking assistance for polydrug abuse.
   (4) Adequate nonresidential and residential services are available
statewide for juveniles in need of alcohol or drug abuse services.
   (5) Each provider of alcohol or drug services has been certified
by the state.
   (6) Drug and alcohol abuse treatment providers provide general
acquired immune deficiency syndrome (AIDS) information during
treatment.
   (i) With regard to supply regulation and reduction in conjunction
with drug and alcohol abuse, the following goals:
   (1) The California National Guard supports federal, state, and
local drug enforcement agencies in counternarcotic operations as
permitted by applicable laws and regulations.
   (2) Each county has a drug and alcohol abuse enforcement team,
designated by the board of supervisors.  This team includes all
components of the criminal justice system.  This team shall be
responsible to the board of supervisors, shall coordinate with the
drug and alcohol abuse advisory board and the county on all criminal
justice matters relating to drug and alcohol abuse, and shall
coordinate, and actively participate, with the county alcohol and
drug program administrators throughout the development and
implementation of the five-year master plan.
   (3) The Office of Criminal Justice Planning, the Youth and Adult
Correctional Agency, the Department of the California Highway Patrol,
the Office of Traffic Safety, and the Department of Justice have
established a state level drug and alcohol abuse enforcement team
that includes representatives from all facets of criminal justice.
The lead agency for the enforcement team has been designated by the
Governor. This team advises the state and assists the local teams.
   (4) The Office of Criminal Justice Planning, the Youth and Adult
Correctional Agency, and the Department of Justice have, as a
priority when determining training subjects, prevention seminars on
drug and alcohol abuse.  The Commission on Peace Officer Standards
and Training has, as a priority when determining training subjects,
drug and alcohol enforcement.
   (5) The Department of the California Highway Patrol, as permitted
by the United States Constitution, will in conjunction with
establishing sobriety checkpoints statewide, assist local law
enforcement agencies with the establishment of local programs.
   (6) Counties with more than 10 superior court judgeships have
established programs under which drug cases receive swift prosecution
by well-trained prosecutors before judges who are experienced in the
handling of drug cases.
   (7) The courts, when determining bail eligibility and the amount
of bail for persons suspected of a crime involving a controlled
substance, shall consider the quantity of the substance involved when
measuring the danger to society if the suspect is released.
   (8) Drunk driving jails have been established that provide
offender education and treatment during incarceration.
   (9) All probation and parole officers have received drug and
alcohol abuse training, including particular training on drug
recognition.
   (10) All parolees and persons on probation with a criminal history
that involves drug or alcohol abuse have conditions of parole or
probation that prohibit drug and alcohol abuse.
   (11) The Judicial Council has provided training on drug and
alcohol abuse for the judges.
   (12) The courts, when sentencing offenders convicted of selling
drugs, consider "street value" of the drugs involved in the
underlying crime.
   (13) Judges have been encouraged to include drug and alcohol abuse
treatment and prevention services in sentences for all offenders.
Judges are requiring, as a condition of sentencing, drug and alcohol
abuse education and treatment services for all persons convicted of
driving under the influence of alcohol or drugs.
   (14) Juvenile halls and jails provide clients with information on
drug and alcohol abuse.
   (15) The estimated number of clandestine labs operating in
California has decreased by 10 percent per year.
   (16) Each local law enforcement agency has developed, with the
schools, protocol on responding to school drug and alcohol abuse
problems.
   (17) Every county has instituted a mandatory driving while under
the influence presentence offender evaluation program.
  SEC. 42.  Section 33492.71 of the Health and Safety Code is amended
to read:
   33492.71.  (a) This section shall apply to each redevelopment
project area created pursuant to this article with a redevelopment
plan that contains the provisions required by Section 33670.  All
amounts calculated pursuant to this section shall be calculated after
the amount required to be deposited in the Low and Moderate Income
Housing Fund pursuant to Sections 33334.2, 33334.3, 33334.6, and
33492.76, and the amounts required to be paid by school and community
college districts pursuant to Section 33492.78 have been deducted
from the local tax increment funds received by the agency in the
applicable fiscal year.
   (b) The payments made pursuant to this section shall be in
addition to any amounts the affected taxing entities receive pursuant
to subdivision (a) of Section 33670.  The agency shall reduce its
payments pursuant to this section to the authority or an affected
taxing entity by any amount the agency has paid, directly or
indirectly, pursuant to Section 33445 and with the agreement of the
authority or the affected taxing entity, or pursuant to any other
provision of law other than this section for, or in connection with a
public facility owned or leased by the authority or that affected
taxing entity and with the agreement of the authority or that
affected taxing entity.
   (c) Commencing in the first fiscal year in which a redevelopment
agency receives tax-increment revenue from a project area created
pursuant to this article, the agency shall pay the following amounts
to the following entities, and the agency shall not be obligated to
pay any additional sums to any taxing entities pursuant to Section
33607.5 and subdivision (b) of Section 33676:
   (1) (A) Thirty-five percent of the tax-increment revenue received
by the agency after the amount required to be deposited in the Low
and Moderate Income Housing Fund pursuant to Sections 33334.2,
33334.3, and 33334.6, as modified by Section 33492.76, has been
deducted each fiscal year shall be paid to the authority to finance
in whole or in part, its responsibilities in providing for the reuse
of Fort Ord.
   (B) Thirty-five percent of the tax-increment revenue received by
the agency after the amount required to be deposited in the Low and
Moderate Income Housing Fund pursuant to Sections 33334.2, 33334.3,
and 33334.6 of, as modified by Section 33492.76, has been deducted
each fiscal year shall be paid to or retained by the redevelopment
agency of the city or county in which the project area is located, to
finance, in whole or in part, its responsibilities in providing for
the reuse of Fort Ord.
   (C) Of the amount referenced in subparagraph (B), each city may
elect to receive from its agency, and the agency shall pay, an amount
not to exceed 25 percent of the tax-increment revenue generated from
a project area established pursuant to this article, to alleviate
the financial burden and detriment incurred as a result of the
adoption of the redevelopment plan in each year until the sixth
fiscal year after the year in which the agency is first allocated one
hundred thousand dollars ($100,000) or more in tax-increment
revenues.
   (D) Upon dissolution of the authority, the amount allocated
pursuant to this section shall continue to be paid to the accounts of
the authority insofar as needed to pay principal and interest or
other amounts on debt that was incurred by the authority.  Funds that
would be allocated pursuant to this section that exceed the amounts
necessary to pay debt service on authority debt shall be divided as
follows:  54 percent shall be allocated to the city or county
redevelopment agency that establishes the project area; 38 percent
shall be allocated to the county; and 8 percent shall be allocated to
other affected taxing entities.
   (2) Twenty-five percent of the tax-increment revenue received by
the agency after the amount required to be deposited in the Low and
Moderate Income Housing Fund pursuant to Sections 33334.2, 33334.3,
and 33334.6, as modified by Section 33492.76, has been deducted each
fiscal year shall be paid to the county to alleviate the financial
burden and detriment to the county incurred because of the
establishment of the project area.
   (3) Not to exceed 5 percent of the tax-increment revenue received
by the agency after the amount required to be deposited in the Low
and Moderate Income Housing Fund pursuant to Sections 33334.2,
33334.3, and 33334.6, as modified by Section 33492.76, has been
deducted each fiscal year shall be paid to other affected taxing
entities as defined in Section 33492.27, but excluding the entities
specified in paragraphs (1) and (2), and excluding school and
community college districts, in order to alleviate the financial
burden and detriment incurred by those affected taxing entities
because of the establishment of the project area.  If the total
payments made pursuant to this paragraph are less than 5 percent of
the tax increment revenue received by the agency pursuant to this
article, the remaining portion of the revenue available as a result
of this paragraph shall be allocated as follows:  37 percent to the
agency, 37 percent to the authority, and 26 percent to the county.
   (d) Notwithstanding subdivision (c), through and including the
second fiscal year after the certification date established pursuant
to Section 33492.9, the amount of tax increment revenue the
redevelopment agencies of the Cities of Marina and Seaside or the
County of Monterey are required to pay to other entities as
prescribed in paragraph (1) shall be modified as follows:
   (1) For each of those fiscal years, the board shall determine an
amount equal to 100 percent of the revenue payable to the city or
county establishing the project area from all ad valorem property
taxes, including allocations of property tax increment revenues
pursuant to subdivision (c), sales taxes, utility users taxes,
business license taxes, real property transfer taxes, franchise
taxes, transient occupancy taxes, and payments received as a result
of vehicle and trailer coach registration, and cigarette and gasoline
taxes except for payments received as a result of vehicle
registrations because of military personnel occupying Fort Ord,
attributable to the property, population, and economic activity that
is within the jurisdiction of each local entity that has established
a redevelopment project area pursuant to this subdivision and is also
within the area of Fort Ord.
   (2) If the amount determined pursuant to paragraph (1) for a
fiscal year is less than four hundred thousand dollars ($400,000),
the redevelopment agency of the local entity that established the
project area shall retain tax-increment revenue received because of
the project area so that the sum of the retained tax-increment
revenue, exclusive of required deposits to the Low and Moderate
Income Housing Fund and the amount of revenue determined pursuant to
paragraph (1), equals four hundred thousand dollars ($400,000), but
in no event exceeding 100 percent of the tax-increment revenue
received for the project area for that fiscal year.  Any
tax-increment revenue received by the redevelopment agency that
established the project area which exceeds the amount necessary to
bring the total of the amount calculated pursuant to paragraph (1),
plus the tax increment retained by the agency pursuant to this
subdivision to four hundred thousand dollars ($400,000) shall be
distributed pursuant to subdivision (c).
   (e) The board may increase or decrease the qualified minimum level
of increment funding set in paragraph (2) of subdivision (d) above
four hundred thousand dollars ($400,000), if the board determines,
based on substantial evidence, that the costs of providing police and
fire protection services to the area of Fort Ord within the local
agency's redevelopment agency's project area exceed or are less than
this amount.  In the event that any city which does not now have
jurisdiction over territory within the area of Fort Ord subsequently
annexes territory within the area of Fort Ord, the board may provide
for a qualified minimum level of increment funding at a level that it
determines, based on substantial evidence as to the cost of
providing police and fire protection services to the area of Fort Ord
within the local agency's redevelopment agency's project area is
appropriate for a period not to exceed three years, but is under no
obligation to do so.
   (f) Because this article provides for an allocation of
tax-increment revenue arising from the redevelopment of the area of
Fort Ord among the affected taxing entities for the purpose of
alleviating any financial burden or detriment that is caused by the
redevelopment plan, the consultations with the affected taxing
entities shall not include the payment of supplemental moneys, but
may only include the discussion of possible modifications in the
redevelopment plan, including, but not limited to, the timing of
projects, selection of projects, scope of projects, and the type of
financing that is being considered for the projects.
   (g) (1) All moneys received by the authority from a redevelopment
agency shall be deposited in a separate fund from all other moneys of
the authority.
   (2) The authority shall annually report on the total amount of
moneys deposited into the fund during the year; the specific project
and programs which were financed with the moneys, including amounts
expended per project and program; and the beginning and ending
balance of the fund.
   (3) The moneys in the fund shall be exclusively expended for the
purpose of financing the development and redevelopment of basewide
facilities as identified in the basewide public capital facilities
plan adopted pursuant to Section 67675 of the Government Code.
   (4) The authority shall have an independent financial audit
annually prepared on the fund in accordance with generally accepted
auditing standards and rules of governing auditing reports
promulgated by the California Board of Accountancy.
   (h) Notwithstanding any other provision of law, no tax increment
moneys, including moneys paid from a redevelopment agency to Fort Ord
Reuse Authority or any affected taxing entity, shall finance the
development or redevelopment of buildings owned or operated by the
California State University or the University of California.
  SEC. 43.  Section 34053 of the Health and Safety Code is amended to
read:
   34053.  For the purpose of providing disaster relief to
farmworkers in communities subject to a natural disaster, the
department shall give priority to awarding grants in communities
participating in the Special Housing Program for Migratory Workers
(Chapter 8.5 (commencing with Section 50710) of Part 2 of Division
33) and the Trade and Commerce Agency shall give priority to funding
those purposes authorized by the Rural Emergency Assistance Housing
Infrastructure Program (Article 6 (commencing with Section 15373.96)
of Chapter 2.5 of Part 6.7 of Division 3 of Title 2 of the Government
Code).
  SEC. 44.  Section 34327.6 of the Health and Safety Code is amended
to read:
   34327.6.  All funds of housing authorities not subject to audit by
a federal agency shall be audited at least once each year at the
expense of the housing authority by a certified public accountant or
a public accountant holding a valid permit issued by the California
Board of Accountancy.  Audits made by a certified public accountant,
or a public accountant, together with a final balance sheet and
operations statement for the year for all authority funds, shall be
filed for record purposes with the Department of Housing and
Community Development.  The authority shall prepare and file with the
Department of Housing and Community Development a budget for the
year for which the audit is taken with each audit prepared or
submitted pursuant to this section.
  SEC. 45.  Section 41503.6 of the Health and Safety Code is amended
to read:
   41503.6.  (a) The Legislature finds and declares that the
California Pollution Control Financing Authority and the Trade and
Commerce Agency, working with the south coast district, have
established successful programs to assist
                 small businesses in complying with district rules
and financing the purchase of pollution control equipment.
   (b) The Treasurer, the California Pollution Control Financing
Authority, and the Trade and Commerce Agency shall work with, and
provide all feasible assistance to, districts to increase
opportunities for small businesses to comply with the rules and
regulations of the district.  That assistance may include loans, loan
guarantees, and other forms of financial assistance.
  SEC. 46.  Section 41865 of the Health and Safety Code is amended to
read:
   41865.  (a) This section shall be known, and may be cited, as the
Connelly-Areias-Chandler Rice Straw Burning Reduction Act of 1991.
   (b) As used in this section:
   (1) "Sacramento Valley Air Basin" means the area designated by the
state board pursuant to Section 39606.
   (2) "Air pollution control council" means the Sacramento Valley
Basinwide Air Pollution Control Council authorized pursuant to
Section 40900.
   (3) "Conditional rice straw burning permit" means a permit to burn
granted pursuant to subdivisions (f) and (h).
   (4) "Allowable acres to be burned" means the number of acres that
may be burned pursuant to subdivision (c).
   (5) "Department" means the Department of Food and Agriculture.
   (6) "Maximum fall burn acres" means the maximum amount of rice
acreage that may be burned from September 1 to December 31,
inclusive, of each year.
   (7) "Maximum spring burn acres" means the maximum amount of rice
acreage that may be burned from January 1 to May 31 of the following
year, inclusive.
   (c) Notwithstanding Section 41850, rice straw burning in counties
in the Sacramento Valley Air Basin shall be phased down, as follows:

   (1) From 1998 to 2000, the maximum spring and fall burn acres
shall be the following number of acres planted prior to September 1
of each year:


             Maximum Fall Burn          Maximum Spring Burn
   Year            Acres                      Acres
   1998            90,000                    110,000
   1999            90,000                    110,000
   2000            90,000                    110,000


   (2) Notwithstanding paragraph (1), any of the 90,000 acres
allocated in the fall that are not burned may be added to the maximum
spring burn acres, provided that the maximum spring burn acres does
not exceed 160,000 acres.
   (3) Notwithstanding paragraph (1), the maximum acres burned
between January 1, 1998, and August 31, 1998, shall be limited so
that the total acres burned between September 1, 1997, and August 31,
1998, do not exceed 38 percent of the total acres planted prior to
September 1, 1997.
   (4) In 2001 and thereafter, the maximum annual burn acres shall be
the number of acres prescribed in subdivision (i), subject to
subdivisions (f) and (h).
   (d) The number of allowable acres to be burned each day shall be
determined by the state board and the air pollution control officers
in the Sacramento Valley Air Basin and equitably allocated among rice
growers in accordance with the annual agricultural burning plan
adopted by the air pollution control council and approved by the
state board.
   (e) On or before September 1, 2000, the state board, in
consultation with the department and the air pollution control
council, shall adopt regulations consistent with the criteria
provided in subdivisions (f) and (h).  On or before September 1,
1996, an advisory group shall be established by the state board and
the department to assist in the adoption of those regulations.
   (f) Commencing September 1, 2001, the county air pollution control
officers in the Sacramento Valley Air Basin may grant conditional
rice straw burning permits once the county agricultural commissioner
has determined that the applicant has met the conditions specified in
subdivision (h).  The county agricultural commissioner shall be
responsible for all field inspections associated with the issuance of
conditional rice straw burning permits.  A conditional rice straw
burning permit shall be valid for only one burn, per field, per year.

   (g) The county agricultural commissioner may charge the applicant
a fee not to exceed the costs incurred by the county agricultural
commissioner in making the determination specified in subdivision
(f).  This subdivision shall be operative only until January 1, 2009.

   (h) If the terms and conditions for issuing conditional rice straw
burning permits specified in paragraphs (1) to (4), inclusive, are
met, a conditional rice straw burning permit may be issued unless the
state board and the department have jointly determined, based upon
an annual review process, that there are other economically and
technically feasible alternative means of eliminating the disease
that are not substantially more costly to the applicant.  The terms
and conditions for issuing the conditional rice straw burning permits
are:
   (1) The fields to be burned are specifically described.
   (2) The applicant has not violated any provision of this section
within the previous three years.
   (3) During the growing season, the county agricultural
commissioner has independently determined the significant presence of
a pathogen in an amount sufficient to constitute a rice disease such
as stem rot.
   (4) The county agricultural commissioner makes a finding that the
existence of the pathogen as identified in paragraph (3) will likely
cause a significant, quantifiable reduction in yield in the field to
be burned during the current or next growing season.  The findings of
the county agricultural commissioner shall be based on
recommendations adopted by the advisory group established pursuant to
subdivision (e).
   (i) (1) The maximum annual number of acres burned in the
Sacramento Valley Air Basin pursuant to paragraph (4) of subdivision
(c) shall be the lesser of:
   (A) The total of 25 percent of each individual applicant's planted
acres that year.
   (B) A total of 125,000 acres planted in the Sacramento Valley Air
Basin.
   (2) Each grower shall be eligible to burn up to 25 percent of the
grower's planted acres, as determined by the air pollution control
officers in the Sacramento Valley Air Basin and subject to the
maximum annual number of acres burned set forth in paragraph (1), if
the grower has met the criteria for a conditional rice straw burning
permit.
   (3) The air pollution control council shall annually determine
which is the lesser of subparagraphs (A) and (B) of paragraph (1),
and shall determine the maximum percentage applicable to all growers
subject to the conditions set forth in subdivisions (f) and (h).
   (4) A grower who owns or operates 400 acres or less who has met
the criteria for the issuance of a conditional rice straw burning
permit may burn his or her entire acreage once every four years,
provided that the limit prescribed in paragraph (1) is not exceeded.

   (5) Nothing in this subdivision shall permit an applicant to
transfer, sell, or trade any permission to burn granted pursuant to
this subdivision to another applicant or individual.
   (j) The state board and the department shall jointly determine if
the allowable acres to be burned, as provided in subdivisions (c),
(f), and (h), may be exceeded due to extraordinary circumstances,
such as an act of God, that have an impact over a continuing duration
and make alternatives other than burning unusable.
   (k) "Administrative burning" means burning of vegetative materials
along roads, in ditches, and on levees adjacent to or within a rice
field, or the burning of vegetative materials on rice research
facilities authorized by the county agricultural commissioner, not to
exceed 2,000 acres.  Administrative burning conducted in accordance
with Section 41852 is not subject to this section.
   (l) (1) On or before September 1, 1992, the state board and the
department shall jointly establish an advisory committee composed of
10 members to assist with the identification and implementation of
alternatives to rice straw burning.  Members of the committee shall
be from the Sacramento Valley Air Basin, and the committee shall
consist of two rice growers, two representatives from the
environmental community, two health officials, two county supervisors
or their designees, one member from the air pollution control
council, and one member from the business community with expertise in
market or product development.  The committee shall meet at least
annually.  General Fund moneys shall not be used to support the
committee.
   (2) The committee shall develop a list of priority goals for the
development of alternative uses of rice straw for the purpose of
developing feasible and cost-effective alternatives to rice straw
burning.  These goals shall include, but not be limited to, research
on alternatives, economic incentives to encourage alternative uses,
and new product development.
   (m) On or before September 1, 1998, the state board, in
consultation with the department, the advisory committee, and the
Trade and Commerce Agency, shall develop an implementation plan and a
schedule to achieve diversion of not less than 50 percent of rice
straw produced toward off-field uses by 2000.  Off-field uses may
include, but are not limited to, the production of energy and fuels,
construction materials, pulp and paper, and livestock feed.
   (n) On or before September 1, 1999, the state board and the
department shall jointly report to the Legislature on the progress of
the phasedown of, and the identification and implementation of
alternatives to, rice straw burning.  This report shall include an
economic and environmental assessment, the status of feasible and
cost-effective alternatives to rice straw burning, recommendations
from the advisory committee on the development of alternatives to
rice straw burning, the status of the implementation plan and the
schedule required by subdivision (m), progress toward achieving the
50 percent diversion goal, any recommended changes to this section,
and other issues related to this section.  The report shall be
updated biennially and transmitted to the Legislature not later than
September 1 of each odd-numbered year.  The state board may adjust
the district burn permit fees specified in subdivision (s) to pay for
the preparation of the report and its updates.  The districts shall
collect and remit the adjustment to the state board, which shall
deposit the fees in the Motor Vehicle Account in the State
Transportation Fund.  It shall be the goal of the state board and the
department that the cost of the report and its updates shall not
exceed fifty thousand dollars ($50,000).
   (o) The state board and the Department of Food and Agriculture
shall jointly collect and analyze all available data relevant to the
air quality and public health impacts and, to the extent feasible,
the economic impacts, that may be associated with the burning of rice
straw pursuant to the schedule provided in paragraph (1) of
subdivision (c).  On or before July 1, 2001, the state board shall
submit a report to the Legislature presenting its findings regarding
the air quality, public health, and economic impacts associated with
the burning of rice straw pursuant to the schedule provided in
paragraph (1) of subdivision (c).
   (p) The Legislature hereby finds and declares as follows:
   (1) Because of the requirements imposed by this section, rice
straw that was previously burned may present, as solid waste, a new
disposal problem.
   (2) The state should assist local governments and growers in
diverting rice straw from landfills by researching and developing
diversion options.
   (q) It is the intent of the Legislature that all feasible
alternatives to rice straw burning and options for diverting rice
straw from landfills be encouraged.
   (r) This subdivision confirms that reductions in emissions from
rice straw burning qualify for air quality offsets, in accordance
with paragraphs (1) and (2).
   (1) These credits shall meet the requirements specified in state
law and district rules and regulations, and shall comply with
applicable district banking rules established pursuant to Sections
40709 to 40713, inclusive.  Districts are urged to establish banking
systems in accordance with Sections 40709 to 40713, inclusive.  The
state board may adopt regulations to implement this subdivision,
including, but not limited to, consideration of the seasonal and
intermittent nature of rice straw burning emissions.  In developing
the regulations, the state board shall consult with all concerned
parties.  However, emission reduction credits that would otherwise
accrue from reductions in emissions from rice straw burning shall not
be affected or negated by the phasedown of burning, as specified in
subdivision (c).
   (2) Reductions in emissions achieved in compliance with
subdivision (c) that are banked or used as credits shall not be
credited for purposes of attainment planning and progress towards the
attainment of any state or national ambient air quality standard as
required by state and federal law.
   (s) (1) Any person who negligently or intentionally violates any
provision of this article is guilty of a misdemeanor and is subject
to a fine of not more than ten thousand dollars ($10,000),
imprisonment in the county jail for not more than nine months, or by
both that fine and imprisonment.  This subdivision applies only to
agricultural burning in the Sacramento Valley Air Basin.
   (2) Any person who negligently or intentionally violates any
provision in this article is liable for a civil penalty of not more
than ten thousand dollars ($10,000).  This subdivision applies only
to agricultural burning in the Sacramento Valley Air Basin.
   (t) Districts in the Sacramento Valley Air Basin shall impose fees
on growers to cover the cost of implementing this section pursuant
to Section 42311.
   (u) To the extent that resources are available, the state board
and the agencies with jurisdiction over air quality within the
Sacramento Valley Air Basin shall do both of the following:
   (1) Improve responses to citizen complaints, and, to the extent
feasible, immediately investigate and analyze smoke complaints from
the public to identify factors that contribute to complaints and to
develop better smoke control measures to be included in the
agricultural burning plan, keep a record of all complaints,
coordinate among other agencies on citizens' complaints, and
investigate the source of the pollution causing the complaint.
   (2) Respond more quickly to requests for update from county air
pollution control officers to help maximize burning days when
meteorological conditions are best suited for smoke dispersion.
  SEC. 46.5.  Section 41865 of the Health and Safety Code is amended
to read:
   41865.  (a) This section shall be known, and may be cited, as the
Connelly-Areias-Chandler Rice Straw Burning Reduction Act of 1991.
   (b) As used in this section:
   (1) "Sacramento Valley Air Basin" means the area designated by the
state board pursuant to Section 39606.
   (2) "Air pollution control council" means the Sacramento Valley
Basinwide Air Pollution Control Council authorized pursuant to
Section 40900.
   (3) "Conditional rice straw burning permit" means a permit to burn
granted pursuant to subdivisions (f) and (h).
   (4) "Allowable acres to be burned" means the number of acres that
may be burned pursuant to subdivision (c).
   (5) "Department" means the Department of Food and Agriculture.
   (6) "Maximum fall burn acres" means the maximum amount of rice
acreage that may be burned from September 1 to December 31,
inclusive, of each year.
   (7) "Maximum spring burn acres" means the maximum amount of rice
acreage that may be burned from January 1 to May 31 of the following
year, inclusive.
   (c) Notwithstanding Section 41850, rice straw burning in counties
in the Sacramento Valley Air Basin shall be phased down, as follows:

   (1) From 1998 to 2000, the maximum spring and fall burn acres
shall be the following number of acres planted prior to September 1
of each year:


             Maximum Fall Burn          Maximum Spring Burn
   Year            Acres                      Acres
   1998            90,000                    110,000
   1999            90,000                    110,000
   2000            90,000                    110,000


   (2) Notwithstanding paragraph (1), any of the 90,000 acres
allocated in the fall that are not burned may be added to the maximum
spring burn acres, provided that the maximum spring burn acres does
not exceed 160,000 acres.
   (3) Notwithstanding paragraph (1), the maximum acres burned
between January 1, 1998, and August 31, 1998, shall be limited so
that the total acres burned between September 1, 1997, and August 31,
1998, do not exceed 38 percent of the total acres planted prior to
September 1, 1997.
   (4) In 2001 and thereafter, the maximum annual burn acres shall be
the number of acres prescribed in subdivision (i), subject to
subdivisions (f) and (h).
   (d) The number of allowable acres to be burned each day shall be
determined by the state board and the air pollution control officers
in the Sacramento Valley Air Basin and equitably allocated among rice
growers in accordance with the annual agricultural burning plan
adopted by the air pollution control council and approved by the
state board.
   (e) On or before September 1, 2000, the state board, in
consultation with the department and the air pollution control
council, shall adopt regulations consistent with the criteria
provided in subdivisions (f) and (h).  On or before September 1,
1996, an advisory group shall be established by the state board and
the department to assist in the adoption of those regulations.
   (f) Commencing September 1, 2001, the county air pollution control
officers in the Sacramento Valley Air Basin may grant conditional
rice straw burning permits once the county agricultural commissioner
has determined that the applicant has met the conditions specified in
subdivision (h).  The county agricultural commissioner shall be
responsible for all field inspections associated with the issuance of
conditional rice straw burning permits.  A conditional rice straw
burning permit shall be valid for only one burn, per field, per year.

   (g) The county agricultural commissioner may charge the applicant
a fee not to exceed the costs incurred by the county agricultural
commissioner in making the determination specified in subdivision
(f).  This subdivision shall be operative only until January 1, 2009.

   (h) If the terms and conditions for issuing conditional rice straw
burning permits specified in paragraphs (1) to (4), inclusive, are
met, a conditional rice straw burning permit may be issued unless the
state board and the department have jointly determined, based upon
an annual review process, that there are other economically and
technically feasible alternative means of eliminating the disease
that are not substantially more costly to the applicant.  The terms
and conditions for issuing the conditional rice straw burning permits
are:
   (1) The fields to be burned are specifically described.
   (2) The applicant has not violated any provision of this section
within the previous three years.
   (3) During the growing season, the county agricultural
commissioner has independently determined the significant presence of
a pathogen in an amount sufficient to constitute a rice disease such
as stem rot.
   (4) The county agricultural commissioner makes a finding that the
existence of the pathogen as identified in paragraph (3) will likely
cause a significant, quantifiable reduction in yield in the field to
be burned during the current or next growing season.  The findings of
the county agricultural commissioner shall be based on
recommendations adopted by the advisory group established pursuant to
subdivision (e).
   (i) (1) The maximum annual number of acres burned in the
Sacramento Valley Air Basin pursuant to paragraph (4) of subdivision
(c) shall be the lesser of:
   (A) The total of 25 percent of each individual applicant's planted
acres that year.
   (B) A total of 125,000 acres planted in the Sacramento Valley Air
Basin.
   (2) Each grower shall be eligible to burn up to 25 percent of the
grower's planted acres, as determined by the air pollution control
officers in the Sacramento Valley Air Basin and subject to the
maximum annual number of acres burned set forth in paragraph (1), if
the grower has met the criteria for a conditional rice straw burning
permit.
   (3) The air pollution control council shall annually determine
which is the lesser of subparagraphs (A) and (B) of paragraph (1),
and shall determine the maximum percentage applicable to all growers
subject to the conditions set forth in subdivisions (f) and (h).
   (4) A grower who owns or operates 400 acres or less who has met
the criteria for the issuance of a conditional rice straw burning
permit may burn his or her entire acreage once every four years,
provided that the limit prescribed in paragraph (1) is not exceeded.

   (5) Nothing in this subdivision shall permit an applicant to
transfer, sell, or trade any permission to burn granted pursuant to
this subdivision to another applicant or individual.
   (j) The state board and the department shall jointly determine if
the allowable acres to be burned, as provided in subdivisions (c),
(f), and (h), may be exceeded due to extraordinary circumstances,
such as an act of God, that have an impact over a continuing duration
and make alternatives other than burning unusable.
   (k) "Administrative burning" means burning of vegetative materials
along roads, in ditches, and on levees adjacent to or within a rice
field, or the burning of vegetative materials on rice research
facilities authorized by the county agricultural commissioner, not to
exceed 2,000 acres.  Administrative burning conducted in accordance
with Section 41852 is not subject to this section.
   (l) (1) On or before September 1, 1992, the state board and the
department shall jointly establish an advisory committee composed of
10 members to assist with the identification and implementation of
alternatives to rice straw burning.  Members of the committee shall
be from the Sacramento Valley Air Basin, and the committee shall
consist of two rice growers, two representatives from the
environmental community, two health officials, two county supervisors
or their designees, one member from the air pollution control
council, and one member from the business community with expertise in
market or product development.  The committee shall meet at least
annually.  General Fund moneys shall not be used to support the
committee.
   (2) The committee shall develop a list of priority goals for the
development of alternative uses of rice straw for the purpose of
developing feasible and cost-effective alternatives to rice straw
burning.  These goals shall include, but not be limited to, research
on alternatives, economic incentives to encourage alternative uses,
and new product development.
   (m) On or before September 1, 1998, the state board, in
consultation with the department, the advisory committee, and the
Trade and Commerce Agency, shall develop an implementation plan and a
schedule to achieve diversion of not less than 50 percent of rice
straw produced toward off-field uses by 2000.  Off-field uses may
include, but are not limited to, the production of energy and fuels,
construction materials, pulp and paper, and livestock feed.
   (n) On or before September 1, 1999, the state board and the
department shall jointly report to the Legislature on the progress of
the phasedown of, and the identification and implementation of
alternatives to, rice straw burning.  This report shall include an
economic and environmental assessment, the status of feasible and
cost-effective alternatives to rice straw burning, recommendations
from the advisory committee on the development of alternatives to
rice straw burning, the status of the implementation plan and the
schedule required by subdivision (m), progress toward achieving the
50 percent diversion goal, any recommended changes to this section,
and other issues related to this section.  The report shall be
updated biennially and transmitted to the Legislature not later than
September 1 of each odd-numbered year.  The state board may adjust
the district burn permit fees specified in subdivision (s) to pay for
the preparation of the report and its updates.  The districts shall
collect and remit the adjustment to the state board, which shall
deposit the fees in the Motor Vehicle Account in the State
Transportation Fund.  It shall be the goal of the state board and the
department that the cost of the report and its updates shall not
exceed fifty thousand dollars ($50,000).
   (o) The state board and the Department of Food and Agriculture
shall jointly collect and analyze all available data relevant to the
air quality and public health impacts and, to the extent feasible,
the economic impacts, that may be associated with the burning of rice
straw pursuant to the schedule provided in paragraph (1) of
subdivision (c).  On or before July 1, 2001, the state board shall
submit a report to the Legislature presenting its findings regarding
the air quality, public health, and economic impacts associated with
the burning of rice straw pursuant to the schedule provided in
paragraph (1) of subdivision (c).
   (p) The Legislature hereby finds and declares as follows:
   (1) Because of the requirements imposed by this section, rice
straw that was previously burned may present, as solid waste, a new
disposal problem.
   (2) The state should assist local governments and growers in
diverting rice straw from landfills by researching and developing
diversion options.
   (q) It is the intent of the Legislature that all feasible
alternatives to rice straw burning and options for diverting rice
straw from landfills be encouraged.
   (r) This subdivision confirms that reductions in emissions from
rice straw burning qualify for air quality offsets, in accordance
with paragraphs (1) and (2).
   (1) These credits shall meet the requirements specified in state
law and district rules and regulations, and shall comply with
applicable district banking rules established pursuant to Sections
40709 to 40713, inclusive.  Districts are urged to establish banking
systems in accordance with Sections 40709 to 40713, inclusive.  The
state board may adopt regulations to implement this subdivision,
including, but not limited to, consideration of the seasonal and
intermittent nature of rice straw burning emissions.  In developing
the regulations, the state board shall
           consult with all concerned parties.  However, emission
reduction credits that would otherwise accrue from reductions in
emissions from rice straw burning shall not be affected or negated by
the phasedown of burning, as specified in subdivision (c).
   (2) Reductions in emissions achieved in compliance with
subdivision (c) that are banked or used as credits shall not be
credited for purposes of attainment planning and progress towards the
attainment of any state or national ambient air quality standard as
required by state and federal law.
   (s) (1) Any person who negligently or intentionally violates any
provision of this article is guilty of a misdemeanor and is subject
to a fine of not more than ten thousand dollars ($10,000),
imprisonment in the county jail for not more than nine months, or by
both that fine and imprisonment.  This subdivision applies only to
agricultural burning in the Sacramento Valley Air Basin.
   (2) Any person who negligently or intentionally violates any
provision in this article is liable for a civil penalty of not more
than ten thousand dollars ($10,000).  This subdivision applies only
to agricultural burning in the Sacramento Valley Air Basin.
   (t) Districts in the Sacramento Valley Air Basin shall impose fees
on growers to cover the cost of implementing this section pursuant
to Section 42311.
   (u) To the extent that resources are available, the state board
and the agencies with jurisdiction over air quality within the
Sacramento Valley Air Basin shall do both of the following:
   (1) Improve responses to citizen complaints, and, to the extent
feasible, immediately investigate and analyze smoke complaints from
the public to identify factors that contribute to complaints and to
develop better smoke control measures to be included in the
agricultural burning plan, keep a record of all complaints,
coordinate among other agencies on citizens' complaints, and
investigate the source of the pollution causing the complaint.
   (2) Respond more quickly to requests for update from county air
pollution control officers to help maximize burning days when
meteorological conditions are best suited for smoke dispersion.
  SEC. 47.  Section 50887.5 of the Health and Safety Code is amended
to read:
   50887.5.  The department is encouraged, as appropriate, to enter
into interagency agreements with the Trade and Commerce Agency or any
other state department or agency to ensure close coordination and
cooperation in using the funds of the other departments or agencies
for the jobs component, child care component, or other components of
the housing developments.
  SEC. 48.  Section 124850 of the Health and Safety Code is amended
to read:
   124850.  The department shall provide expert technical assistance
to strategically located, high-risk rural hospitals to assist the
hospitals in carrying out an assessment of potential business and
diversification of service opportunities.  In providing the technical
assistance on business opportunities, the department shall consult
with the Trade and Commerce Agency and other appropriate agencies.
The high-risk rural hospital, in cooperation with the department, may
develop a short-term plan of action if, in its opinion, the results
of the assessment so indicate.  The department, in consultation with
an organization of interest, shall do all of the following:
   (a) Establish a process for identifying strategically located,
high-risk rural hospitals and reviewing requests from the hospitals
for assistance.
   (b) Develop a standard format for the strategic assessment.
   (c) Develop a model action plan.
   (d) Establish criteria for review of action plans.
   (e) Request input and assistance from organizations of interest.
   (f) Make the strategic assessment format and model action plan
available to all small and rural hospitals.
  SEC. 49.  Section 10821.5 of the Insurance Code is amended to read:

   10821.5.  (a) The purchasing alliance shall furnish an annual
financial audit to the commissioner on the forms provided by the
commissioner.  The annual financial audit may be filed either on a
calendar year basis on or before March 31, or, if approved in writing
by the commissioner in respect to any individual purchasing
alliance, on a fiscal year basis on or before 90 days after the end
of the fiscal year.  The deadline for filing the annual audit may be
extended by the commissioner for good cause, as determined by the
commissioner for a period not to exceed 60 days.  Failure to submit
an audit on time, or within any extended time that the commissioner
may grant, shall be grounds for an order by the commissioner to
prohibiting the alliance from accepting any new business pursuant to
this section.  The audits shall be private, except that a synopsis of
the balance sheet on a form prescribed by the commissioner may be
made available to the public upon request.  The audits shall be
conducted and prepared in accordance with generally accepted auditing
standards by an independent certified public accountant or
independent licensed public accountant whose certification or license
is in good standing at the time of the preparation.  The fee for
filing of the audit shall be three hundred thirteen dollars ($313).
Any purchasing alliance that fails to file any audit or other report
on or before the date it is due shall pay to the commissioner a
penalty fee of one hundred eighteen dollars ($118) payable within 30
days of the due date of the audit and on failure to pay that fine or
any fee or file the audit required by this section, shall forfeit the
privilege of accepting new business until the delinquency is
corrected.  The commissioner may refuse to accept an audit or order a
new audit for any of the following reasons:
   (1) Adverse result in any proceeding before the California Board
of Accountancy affecting the auditor's license.
   (2) The auditor has an affiliation with the purchasing alliance or
any of its officers or directors that could prevent his or her
reports on the purchasing alliance from being reasonably objective.
   (3) The auditor has been convicted of any misdemeanor or felony
based on his or her activities as an accountant.
   (4) Judgment adverse to the auditor in any civil action finding
him or her guilty of fraud, deceit, or misrepresentation in the
practice of his or her profession.
   (b) Financial and performance audits or examinations of the
purchasing alliance shall be conducted by the commissioner once every
two years.  The cost of the examinations or audits are to be paid by
the purchasing alliance.  The commissioner may impose conditions on
registration, or continued registration to remedy compliance or
performance problems.
   (c) At any time the commissioner determines, after notice and
hearing, that a purchasing alliance registered under this article has
willfully failed to comply with any of the provisions of this
section, the commissioner shall make his or her order prohibiting the
purchasing alliance from conducting its business for a period not to
exceed one year.
   Any purchasing alliance violating an order made under this
subdivision is subject to seizure under Article 14 (commencing with
Section 1010) of Chapter 1 of Part 2 of Division 1, is guilty of a
misdemeanor, and may have its certificate of registration revoked by
the commissioner.  Any person aiding and abetting any purchasing
alliance in violation of that order is guilty of a misdemeanor.
   The purpose of this section is to maintain the solvency of the
purchasing alliance subject to this article and to protect the public
by preventing fraud and requiring fair dealing.  The audit shall be
designed to ensure that the purchasing alliance is not a risk-bearing
entity, to ensure sound financial controls and money management, and
to prevent mismanagement or misappropriation of funds either through
neglect or malfeasance.  In order to carry out those purposes the
commissioner shall make reasonable rules and regulations to govern
the conduct of the business of the purchasing alliance subject to
this chapter.
   (d) The commissioner shall establish fees for initial registration
of a purchasing alliance and for renewal of registration of a
purchasing alliance in an amount sufficient to cover the costs of
administering this chapter.  A purchasing alliance shall pay the
initial registration fee at the time of application for registration,
and the renewal fee at the time of application for renewal.
  SEC. 50.  Section 12389 of the Insurance Code is amended to read:
   12389.  (a) An underwritten title company as defined in Section
12340.5, which shall be a stock corporation, may engage in the
business of preparing title searches, title reports, title
examinations, certificates or abstracts of title, upon the basis of
which a title insurer writes title policies, provided that:
   (1) Only domestic corporations may be licensed under this section
and no underwritten title company, as defined in Section 12340.5,
shall become licensed under this section, or change the name under
which it is licensed or operates, unless it has first complied with
Section 881.
   (2) Depending upon the county or counties in which the company is
licensed to transact business, it shall maintain required minimum net
worth as follows:



          Aggregate number of documents
          recorded and documents filed
          in the offices of the county
          recorders in the preceding
          calendar year in all counties
          where the company is licensed
          to transact business.
                                                Amount of required
          Number of documents                    minimum net worth
          Less than 50,000 ........................  $ 75,000
          50,000 to 100,000 .......................   120,000
          100,000 to 500,000 ......................   200,000
          500,000 to 1,000,000 ....................   300,000
          1,000,000 or more .......................   400,000

   "Net worth" is defined as the excess of assets over all
liabilities and required reserves.  It may carry as an asset the
actual cost of its title plant provided the value ascribed to that
asset shall not exceed the aggregate value of all other assets.
   Where a title plant of an underwritten title company is not being
currently maintained, the asset value of the plant shall not exceed
its asset value as determined in the preceding paragraph as of the
date to which that plant is currently maintained, less 1/10th thereof
for each succeeding year or part of the succeeding year that the
plant is not being currently maintained.  For the purposes of this
section, a title plant shall be deemed currently maintained so long
as it is used in the normal conduct of the business of title
insurance, and (1) the owner of the plant continues regularly to
obtain and index title record data to the plant or to a continuation
thereof in a format other than that previously used, including, but
not limited to, computerization of the data, or (2) the owner of the
plant is a participant, in an arrangement for joint use of a title
plant system regularly maintained in any format, provided the owner
is contractually entitled to receive a copy of the title record data
contained in the jointly used title plant system during the period of
the owner's participation therein, either periodically or upon
termination of  that participation, at a cost not to exceed the
actual cost of duplication of the title record data.
   An underwritten title company at all times shall maintain current
assets of at least ten thousand dollars ($10,000) in excess of its
current liabilities, as current assets and liabilities may be defined
pursuant to regulations made by the commissioner.  In making the
regulations, the commissioner shall be guided by generally accepted
accounting principles followed by certified public accountants in
this state.
   (3) An underwritten title company shall obtain from the
commissioner a license to transact its business.  The license shall
not be granted until the applicant conforms to the requirements of
this section and all other provisions of this code specifically
applicable to applicant.  After issuance the holder shall continue to
comply with the requirements as to its business set forth in this
code, in the applicable rules and regulations of the commissioner and
in the laws of this state.
   Any underwritten title company who possesses, or is required to
possess, a license pursuant to this section shall be subject as if an
insurer to the provisions of Article 8 (commencing with Section 820)
of Chapter 1 of Part 2 of Division 1 of this code and shall be
deemed to be subject to authorization by the Insurance Commissioner
within the meaning of subdivision (e) of Section 25100 of the
Corporations Code.
   The license may be obtained by filing an application on a form
prescribed by the commissioner accompanied by a filing fee of three
hundred fifty-four dollars ($354).  The license when issued shall be
for an indefinite term and shall expire with the termination of the
existence of the holder, subject to the annual renewal fee imposed
under Sections 12415 and 12416.
   An underwritten title company seeking to extend its license to an
additional county shall pay a two hundred seven dollar ($207) fee for
each additional county, and shall furnish to the commissioner
evidence, at least sufficient to meet the minimum net worth
requirements of paragraph (2), of its financial ability to expand its
business operation to include the additional county or counties.
   (4) (A) An underwritten title company shall furnish an audit to
the commissioner on the forms provided by the commissioner annually,
either on a calendar year basis on or before March 31st or, if
approved in writing by the commissioner in respect to any individual
company, on a fiscal year basis on or before 90 days after the end of
the fiscal year.  The time for furnishing any audit required by this
paragraph may be extended, for good cause shown, on written approval
of the commissioner for a period, not to exceed 60 days.  Failure to
submit an audit on time, or within the extended time that the
commissioner may grant, shall be grounds for an order by the
commissioner to accept no new business pursuant to subdivision (d).
The audits shall be private, except that a synopsis of the balance
sheet on a form prescribed by the commissioner may be made available
to the public.
   (B) The audits shall be made in accordance with generally accepted
auditing standards by an independent certified public accountant or
independent licensed public accountant whose certification or license
is in good standing at the time of the preparation.  The fee for
filing the audit shall be three hundred thirteen dollars ($313).
   (C) The commissioner may refuse to accept an audit or order a new
audit for any of the following reasons:
   (i) Adverse result in any proceeding before the California Board
of Accountancy affecting the auditor's license.
   (ii) The auditor has an affiliation with the underwritten title
company or any of its officers or directors that would prevent his or
her reports on the company from being reasonably objective.
   (iii) The auditor has suffered conviction of any misdemeanor or
felony based on his or her activities as an accountant.
   (iv) Judgment adverse to the auditor in any civil action finding
him or her guilty of fraud, deceit, or misrepresentation in the
practice of his or her profession.
   Any company that fails to file any audit or other report on or
before the date it is due shall pay to the commissioner a penalty fee
of one hundred eighteen dollars ($118) and on failure to pay that or
any other fee or file the audit required by this section shall
forfeit the privilege of accepting new business until the delinquency
is corrected.
   (b) An underwritten title company may engage in the escrow
business and act as escrow agent provided that:
   (1) It shall maintain record of all receipts and disbursements of
escrow funds.
   (2) It shall deposit seven thousand five hundred dollars ($7,500)
for each county in which it transacts business in some form permitted
by Section 12351 with the commissioner who shall immediately make a
special deposit of that amount in the State Treasury and that deposit
shall be subject to Sections 12353, 12356, 12357, and 12358 and as
long as there are no claims against the deposit all interest and
dividends thereon shall be paid to the depositor.  The deposit shall
be for the security and protection of persons having lawful claims
against the depositor growing out of escrow transactions with it.
The deposit shall be maintained until four years after all escrows
handled by the depositor have been closed.
   (A) The commissioner may release the deposits prior to the passage
of the four-year period upon presentation of evidence satisfactory
to the commissioner of either a statutory merger of the depositor
into a licensee or certificate holder subject to the jurisdiction of
the commissioner, or a valid assumption agreement under which all
liability of the depositor stemming from escrow transactions handled
by it is assumed by a licensee or certificate holder subject to the
jurisdiction of the commissioner.
   (B) With the foregoing exceptions, the deposit shall be returned
to the depositor or lawful successor in interest following the
four-year period, upon presentation of evidence satisfactory to the
commissioner that there are no claims against the deposit stemming
from escrow transactions handled by the depositor.  If the
commissioner has evidence of one or more claims against the
depositor, and the depositor is not in conservatorship or
liquidation, the commissioner may interplead the deposit by special
endorsement to a court of competent jurisdiction for distribution on
the basis that claims against the depositor stemming from escrow
transactions handled by it have priority in the distribution over
other claims against the depositor.
   (c) The commissioner shall, whenever it appears necessary, examine
the business and affairs of a company licensed under this section.
All of these examinations shall be at the expense of the company.
   (d) At any time that the commissioner determines, after notice and
hearing, that a company licensed under this section has willfully
failed to comply with any of the provisions of this section, the
commissioner shall make his or her order prohibiting the company from
conducting its business for a period of not more than one year.
   Any company violating the commissioner's order is subject to
seizure under Article 14 (commencing with Section 1010) of Chapter 1
of Part 2 of Division 1, is guilty of a misdemeanor, and may have its
license revoked by the commissioner.  Any person aiding and abetting
any company in a violation of the commissioner's order is guilty of
a misdemeanor.
   The purpose of this section is to maintain the solvency of the
companies subject to this section and to protect the public by
preventing fraud and requiring fair dealing.  In order to carry out
these purposes, the commissioner may make reasonable rules and
regulations to govern the conduct of its business of companies
subject to this section.
   The name under which each underwritten title company is licensed
shall at all times be an approved name.  The fee for filing an
application for a change of name shall be one hundred eighteen
dollars ($118).  Each such company shall be subject to the provisions
of Article 14 (commencing with Section 1010) and Article 14.5
(commencing with Section 1065.1) of Chapter 1 of Part 2 of Division
1.
   The rules and regulations shall be adopted, amended or repealed in
accordance with the procedure provided in Chapter 3.5 (commencing
with Section 11350) of Part 1 of Division 3 of Title 2 of the
Government Code.
  SEC. 51.  Section 25696 of the Public Resources Code is amended to
read:
   25696.  The commission, in cooperation with the California State
World Trade Commission and the Trade and Commerce Agency, may assist
California-based energy technology and energy conservation firms to
export their technologies, products, and services to international
markets.
   The commission may, in coordination with the California State
World Trade Commission, do all of the following:
   (a) Conduct a technical assistance program to help California
energy companies improve export opportunities and enhance foreign
buyers' awareness of and access to energy technologies and services
offered by California-based companies.  Technical assistance
activities may include, but are not limited to, an energy technology
export information clearinghouse, a referral service, a trade lead
service consulting services for financing, market evaluation, and
legal counseling, and information seminars.
   (b) Perform research studies and solicit technical advice to
identify international market opportunities.
   (c) Assist California energy companies to evaluate project or
site-specific energy needs of international markets.
   (d) Assist California energy companies to identify and address
international trade barriers restricting energy technology exports,
including unfair trade practices and discriminatory trade laws.
   (e) Develop promotional materials in conjunction with California
energy companies to expand energy technology exports.
   (f) Establish technical exchange programs to increase foreign
buyers' awareness of suitable energy technology uses.
   (g) Prepare equipment performance information to enhance potential
export opportunities.
   (h) Coordinate activities with state, federal, and international
donor agencies to take advantage of trade promotion and financial
assistance efforts offered.
  SEC. 52.  Section 31306 of the Public Resources Code is amended to
read:
   31306.  (a) The conservancy shall propose capital projects and
capital programs, generated by the conservancy, local public
agencies, or state agencies for grants available under Section 306A
of the federal Coastal Zone Management Improvement Act ( Public Law
96-464).  The commission shall forward the proposed projects and
programs to the Trade and Commerce Agency as applications recommended
for funding under Section 306A.  The commission shall not forward
any application unless it has been proposed by the conservancy.
   (b) Nothing in this chapter shall diminish the commission's
authority pursuant to Section 30330 of the Public Resources Code,
which shall include determination of the allocation of federal
financial assistance among the coastal management activities, coastal
research activities, coastal energy impact activities, living marine
resource activities, and natural resources enhancement and
management activities, eligible for federal financial assistance
under the Coastal Zone Management Improvement Act, or any amendment
thereto, or any other federal act enacted up to this time or in the
future, that relates to the planning and management of the coastal
zone, except as provided in this section.
   (c) (1) Prior to the commission's determination of allocations
under subdivision (b), the commission and the conservancy shall
concur on the allocation for capital projects and capital programs
generated by the conservancy, local public agencies, or state
agencies for public access, agricultural preservation, enhancement of
coastal resources, coastal restoration, urban waterfront
restoration, reservation of significant coastal resource areas, and
commercial fishing facilities.  No allocation for these capital
projects and capital programs shall be made unless they are proposed
by the conservancy.
   (2) Prior to the commission's determination of allocations under
subdivision (b), the commission and the San Francisco Bay
Conservation and Development Commission shall concur on the
allocation for the San Francisco Bay Conservation and Development
Commission to carry out its responsibilities under the federally
approved California Coastal Management Program.
   (3) In determining the allocations under subdivision (b), the
commission shall consult with the conservancy, the San Francisco Bay
Conservation and Development Commission, and the Department of
Finance, and shall ensure that agencies eligible for federal
financial assistance under the Coastal Zone Management Improvement
Act are allocated sufficient assistance to carry out their required
responsibilities under the federally approved California Coastal
Management Program.
  SEC. 53.  Section 42021 of the Public Resources Code is amended to
read:
   42021.  Nothing in this chapter prohibits an applicant from
seeking designation of an enterprise zone by the Trade and Commerce
Agency and receiving economic incentives as defined in Section 7073
of the Government Code.
  SEC. 54.  Section 42022 of the Public Resources Code is amended to
read:
   42022.  In evaluating an application for designation of a
recycling market development zone, the board shall consult with the
Trade and Commerce Agency.
  SEC. 55.  Section 10525 of the Unemployment Insurance Code is
amended to read:
   10525.  The coordination and special services plan shall also
include a dislocated workers assistance plan to provide services to
eligible workers pursuant to Chapter 7.5 (commencing with Section
15075) of Division 8.  The dislocated workers assistance plan shall
meet the requirements of Title III of the federal Job Training
Partnership Act (Public Law 97-300), as amended, and include all of
the following:
   (a) The specific responsibilities of each of the state agencies
administering dislocated workers assistance programs.
   (b) Procedures for the exchange of information and coordination
between the Employment Development Department and the Trade and
Commerce Agency for the purpose of developing strategies to avert
plant closings or mass layoffs and to accelerate the reemployment of
affected individuals.
   (c) Provide that services to a substantial number of members of a
labor organization shall be established only after full consultation
with the labor organization.
   (d) Prescribe program standards, including, but not limited to,
standards based on job placement and job retention.
   (e) Integration of displaced worker services with services and
payments made available under the federal Trade Act of 1974, as
amended (19 U.S.C. Sec.  2101 and following), unemployment insurance
benefits, the Job Service, vocational education programs, and other
programs provided under this division.
   (f) Coordination of local dislocated worker rapid response
assistance planning with the federal Worker Adjustment and Retraining
Notification Act,
Public Law 100-379, by designation of local service delivery area
grant administrators as local governmental entities that will also
formally receive the 60-day notice required under the federal act.
  SEC. 56.  Section 12112 of the Unemployment Insurance Code is
amended to read:
   12112.  A procedure for applying for grants shall be developed by
a panel consisting of the Directors of the Employment Development
Department, the Department of Industrial Relations, and the Trade and
Commerce Agency, who shall also make the final decision on the
awarding of grants.
  SEC. 57.  Section 12151 of the Unemployment Insurance Code is
amended to read:
   12151.  It is the intent of the Legislature that the Employment
Development Department, with the assistance of the Department of
Industrial Relations and the Trade and Commerce Agency, seek and
apply for funds from the federal government and other potential
sources to implement the program established under this division.
  SEC. 58.  Section 15076 of the Unemployment Insurance Code is
amended to read:
   15076.  The private industry councils in each service delivery
area shall recommend and approve an employment and training plan for
displaced workers, which shall meet the requirements of the federal
Job Training Partnership Act, and in addition provide for each of the
following:
   (a) Identification, in conjunction with the Employment Development
Department, of individuals eligible for assistance due to any of the
following facts:
   (1) The individuals have been terminated or laid off or have
received a notice of termination or layoff from employment, are
eligible for or have exhausted their entitlement to unemployment
compensation, and are unlikely to return to their previous industry
or occupation.
   (2) The individuals have been terminated from employment, or have
received a notice of termination of employment, as a result of any
permanent closure of, or substantial layoff at, a plant, facility, or
enterprise.
   (3) The individuals are long-term unemployed and have limited
opportunities for employment or reemployment in the same or a similar
occupation in the area in which they reside, including older
individuals who have had substantial barriers to employment by reason
of age.
   (4) The individuals were self-employed (including farmers and
ranchers) and are unemployed as a result of general economic
conditions in the community in which they reside or because of
natural disasters.
   (5) The individuals are displaced homemakers who may be provided
services as additional dislocated workers without adversely affecting
the delivery of services to eligible dislocated workers.
   (b) Determination of job opportunities that exist within the local
labor market area or outside the labor market area for which
displaced workers could be retrained, and determination of what
training for identified employment opportunities exists or could be
provided within the local area.  This determination shall be
undertaken by use of both of the following:
   (1) The State-Local Cooperative Labor Market Information Program
established in Section 15074.
   (2) As appropriate, representatives of the Employment Training
Panel in accordance with its functions pursuant to Chapter 3.5
(commencing with Section 10200) of Part 1 of Division 3, and
representatives of the Trade and Commerce Agency as provided in
Article 3.5 (commencing with Section 15340) of Chapter 1 of Part 6.7
of Division 3 of the Government Code.
   (c) Informing eligible displaced workers of training
opportunities.  This process shall be undertaken in conjunction with
the Employment Development Department.
   (d) A program for dislocated workers assistance drawing, as
appropriate, upon existing facilities and resources, which may
include, but not be limited to, all of the following:
   (1) Dislocated worker employment services and related assistance,
provided that employment-related services are coordinated with, and
do not duplicate, those available and accessible services of the
Employment Development Department, including all of the following:
   (A) Job search assistance.
   (B) Job development.
   (C) Support services, such as financial and personal counseling,
child care and related children's services, and assistance in
obtaining equipment and supplies necessary for retraining or new
employment.
   (D) Relocation assistance, if it is determined that an eligible
individual cannot obtain employment in the commuting area and has
secured suitable long duration employment or a bona fide job offer.
   (E) Prelayoff assistance.
   (F) Programs conducted in cooperation with employers or labor
organizations to provide early intervention in the event of closures
of plants or facilities.
   (2) Training in job skills for which demand exceeds supply,
including, where feasible, job training administered by the
Employment Training Panel pursuant to Chapter 3.5 (commencing with
Section 10200) of Part 1 of Division 3.
   (3) Commuting assistance, consistent with the Displaced Worker
Transportation Program established pursuant to Section 14002.5 of the
Government Code.
   (e) Consultation with affected labor organizations, in the case of
any assistance program that will provide services to a substantial
number of members of these labor organizations.
   (f) Involvement of displaced workers in program delivery,
including, as appropriate, paid employment for these individuals in
providing services under the program.
   (g) Utilization of services and resources from other sources,
public and private, and specific procedures for coordination with
other programs, in order to maximize services for displaced workers
and their families and increase employment and training
opportunities.  Examples of programs to be included are the
following:
   (1) Other employment and training and education programs.
   (2) Social services, including child care and related children's
services.
   (3) Housing programs, including low-income weatherization and home
energy conservation programs.
   (4) Transportation related programs, including highway, bridge,
and mass transit construction and repair.
   (5) Other programs related to infrastructure development and
repair.
   (6) Economic development programs deemed applicable.
   (h) Contracting with the Employment Development Department in
order to provide funding for special services the department is to
provide under the local displaced worker assistance program.
   (i) Coordination with neighboring jurisdictions, in cases of plant
closings or mass layoffs that cross service delivery areas.
   (j) A system of program and fiscal accountability to ensure
maximum benefit from the expenditure of federal and state funds and
that is consistent with procedures established in the state's job
training plan pursuant to Section 121 of the federal Job Training
Partnership Act (Public Law 93-700), as amended, including all of the
following:
   (1) Performance goals and standards, established by the State Job
Training Coordinating Council, including standards for both of the
following:
   (A) Placement and retention in unsubsidized employment.
   (B) Earnings and wages.
   (2) Procedures for reporting on the outcome of the program, which
include all of the following:
   (A) A description of activities conducted.
   (B) Characteristics of participants.
   (C) The extent to which the activities conducted achieved relevant
performance goals.
   (3) Fiscal control, accounting, audit, and related provisions.
   (k) Identification of the administrative entity of the local
service delivery area or consortium that shall also receive the
60-day notification required to be given to units of local government
pursuant to the federal Worker Adjustment and Retraining
Notification Act (Public Law 100-379).
   (l) Integration of services and benefits available under Chapter 2
of Title II of the federal Trade Act of 1974 (19 U.S.C. Sec. 2101
and following) and Article 1.5 (commencing with Section 1266) of
Chapter 5 of Part 1 of Division 1.
   The plan shall be reviewed and approved according to Sections
15045 and 15046.
  SEC. 59.  Section 15076.5 of the Unemployment Insurance Code is
amended to read:
   15076.5.  The State Job Training Coordinating Council shall do all
of the following:
   (a) Be the lead state agency to establish policies for:
   (1) Alleviating adverse conditions that might cause plant closures
and, where closures are unavoidable, assisting local efforts to
secure alternative employment and retraining opportunities for
displaced workers.
   (2) Marshaling available state and federal resources to aid
workers and communities affected by major plant closures and to
foster long-term economic vitality, industrial growth, and job
opportunities.
   (3) Integrating appropriate activities of the Trade and Commerce
Agency, the Employment Development Department, the Employment
Training Panel, the Department of Industrial Relations, the State
Department of Education, the Chancellor's Office of the California
Community Colleges, and the Governor's Office of Planning and
Research with the State Dislocated Worker Unit.
   (4) Collection of data and preparation of economic analyses and
reporting, intended to provide better and more detailed assessments
of future trends within the industrial, commercial, and agricultural
sectors of the economy.
   (b) Review and comment on the plans for displaced worker
assistance programs submitted pursuant to Section 15076.
   (c) Recommend to the Governor necessary components of state plans
under the jurisdiction of other state offices, departments, or
agencies that administer programs appropriate for coordination with
dislocated worker assistance programs authorized by this chapter.
   (d) Review and make recommendations to the Governor and the
Legislature regarding changes needed in current federal and state
statutes and programs in order to minimize adverse consequences of
plant closures and promote rapid reemployment of workers and
revitalization of communities.
  SEC. 60.  Section 15077 of the Unemployment Insurance Code is
amended to read:
   15077.  The Employment Development Department shall do all of the
following:
   (a) Review and approve the plans for displaced workers' assistance
submitted pursuant to Section 15076.
   (b) According to policies established by the State Job Training
Coordinating Council and state law, coordinate displaced workers
assistance efforts in situations where plant closures or layoffs
within an industry have a significant statewide impact.
   (c) Encourage and coordinate early identification of situations of
potential plant closures, and provide any assistance that may be
necessary to alleviate economic dislocation.
   (d) Provide assistance to the Trade and Commerce Agency in active
recruitment of replacement industries or establishments.
   (e) Cooperate with the Employment Training Panel in the
coordination of training and services for displaced workers eligible
under Chapter 3.5 (commencing with Section 10200) of Part 1 of
Division 3.
   (f) Serve as the state agency providing any information and
procedural activities that may be required by the federal government
to ensure federal funding for dislocated workers assistance.
   (g) Provide for the submission of applications to the United
States Secretary of Labor for additional federal funding to the state
in accordance with Title III of the federal Job Training Partnership
Act (Public Law 93-700), as amended.
   (h) Operate a monitoring, reporting, and management system that
provides an adequate information base for effective program planning,
management, review, and evaluation.
   (i) Administer federal and state funds appropriated for the
support of demonstration and special assistance programs for
dislocated workers.
   (j) Provide specific periodic notification to employers of 100 or
more employees of their potential responsibilities under the federal
Worker Adjustment and Retraining Notification Act (P.L. 100-379), the
availability of services to employees and employers under this and
other state laws, and instructions on how to comply with those laws
and obtain appropriate services.
  SEC. 61.  Section 2.5 of this bill incorporates amendments to
Section 149 of the Business and Professions Code proposed by both
this bill and SB 1863.  It shall only become operative if (1) both
bills are enacted and become effective on or before January 1, 2001,
but this bill becomes operative first, (2) each bill amends Section
149 of the Business and Professions Code, and (3) this bill is
enacted after SB 1863, in which case Section 149 of the Business and
Professions Code, as amended by Section 2 of this bill, shall remain
operative only until the operative date of SB 1863, at which time
Section 2.5 of this bill shall become operative.
  SEC. 62.  Section 15.5 of this bill incorporates amendments to
Section 84040 of the Education Code proposed by both this bill and AB
2388.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2001, but this bill
becomes operative first, (2) each bill amends Section 84040 of the
Education Code, and (3) this bill is enacted after AB 2388, in which
case Section 84040 of the Education Code, as amended by Section 15 of
this bill, shall remain operative only until the operative date of
AB 2388, at which time Section 15.5 of this bill shall become
operative.
  SEC. 63.  Section 46.5 of this bill incorporates amendments to
Section 41865 of the Health and Safety Code proposed by both this
bill and AB 2939.  It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2001, but
this bill becomes operative first, (2) each bill amends Section 41865
of the Health and Safety Code, and (3) this bill is enacted after AB
2939, in which case Section 41865 of the Health and Safety Code, as
amended by Section 46 of this bill, shall remain operative only until
the operative date of AB 2939, at which time Section 46.5 of this
bill shall become operative.
  SEC. 64.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order to provide for the protection of consumers, to promote
the health and safety of the public, and to promote the efficiency of
state government it is necessary that this act go into immediate
effect.
